• Kinza Babylon Staked BTCKinza Babylon Staked BTC(KBTC)$83,270.000.00%
  • Steakhouse EURCV Morpho VaultSteakhouse EURCV Morpho Vault(STEAKEURCV)$0.000000-100.00%
  • Stride Staked InjectiveStride Staked Injective(STINJ)$16.51-4.18%
  • Vested XORVested XOR(VXOR)$3,404.231,000.00%
  • FibSwap DEXFibSwap DEX(FIBO)$0.0084659.90%
  • ICPanda DAOICPanda DAO(PANDA)$0.003106-39.39%
  • TruFin Staked APTTruFin Staked APT(TRUAPT)$8.020.00%
  • bitcoinBitcoin(BTC)$107,761.00-1.67%
  • ethereumEthereum(ETH)$2,757.51-0.52%
  • VNST StablecoinVNST Stablecoin(VNST)$0.0000400.67%
  • tetherTether(USDT)$1.000.00%
  • rippleXRP(XRP)$2.24-3.22%
  • binancecoinBNB(BNB)$667.52-0.61%
  • Wrapped SOLWrapped SOL(SOL)$143.66-2.32%
  • solanaSolana(SOL)$159.41-3.87%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.189839-6.37%
  • tronTRON(TRX)$0.274784-5.69%
  • staked-etherLido Staked Ether(STETH)$2,757.85-0.44%
  • cardanoCardano(ADA)$0.69-4.73%
  • HyperliquidHyperliquid(HYPE)$41.54-1.85%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$107,729.00-1.74%
  • Gaj FinanceGaj Finance(GAJ)$0.0059271.46%
  • Content BitcoinContent Bitcoin(CTB)$24.482.55%
  • USD OneUSD One(USD1)$1.000.11%
  • Wrapped stETHWrapped stETH(WSTETH)$3,320.31-0.62%
  • SuiSui(SUI)$3.33-4.98%
  • UGOLD Inc.UGOLD Inc.(UGOLD)$3,042.460.08%
  • chainlinkChainlink(LINK)$14.45-5.37%
  • ParkcoinParkcoin(KPK)$1.101.76%
  • avalanche-2Avalanche(AVAX)$21.08-5.29%
  • stellarStellar(XLM)$0.275434-2.66%
  • bitcoin-cashBitcoin Cash(BCH)$431.48-2.81%
  • leo-tokenLEO Token(LEO)$8.88-1.39%
  • ToncoinToncoin(TON)$3.24-0.45%
  • shiba-inuShiba Inu(SHIB)$0.000013-4.40%
  • USDSUSDS(USDS)$1.000.00%
  • Wrapped eETHWrapped eETH(WEETH)$2,944.45-0.81%
  • hedera-hashgraphHedera(HBAR)$0.169587-5.86%
  • wethWETH(WETH)$2,759.69-0.42%
  • Yay StakeStone EtherYay StakeStone Ether(YAYSTONE)$2,671.07-2.84%
  • litecoinLitecoin(LTC)$89.87-2.29%
  • polkadotPolkadot(DOT)$4.06-5.22%
  • moneroMonero(XMR)$329.26-2.64%
  • Pundi AIFXPundi AIFX(PUNDIAI)$16.000.00%
  • PengPeng(PENG)$0.60-13.59%
  • Binance Bridged USDT (BNB Smart Chain)Binance Bridged USDT (BNB Smart Chain)(BSC-USD)$1.00-0.25%
  • Ethena USDeEthena USDe(USDE)$1.00-0.02%
  • Bitget TokenBitget Token(BGB)$4.71-3.71%
  • PepePepe(PEPE)$0.000012-3.55%
TradePoint.io
  • Main
  • AI & Technology
  • Stock Charts
  • Market & News
  • Business
  • Finance Tips
  • Trade Tube
  • Blog
  • Shop
No Result
View All Result
TradePoint.io
No Result
View All Result

Why Options Are Rarely Exercised (Options Traders MUST Know This)

May 3, 2023
in Trade Tube
Reading Time: 1 min read
A A
ShareShareShareShareShare



💰 Get up to $3,000 when you open and fund your first tastytrade brokerage account:
🔥 Learn data-driven options strategies:

Why Short Options Are Rarely Exercised (Written Guide):

YOU MAY ALSO LIKE

Strong jobs data throws off Fed’s rate cut timeline

Warner Bros. Discovery is getting a huge makeover

Beginner options traders have a very common fear, which is being assigned on an in-the-money short option before expiration. But that only happens if somebody exercises the option.

In this video, I break down why options are almost NEVER exercised, and therefore, you’ll almost never be assigned on a short option before expiration.

I use an AAPL call option example to illustrate why a trader would almost never want to exercise an ITM option. I do so in excruciating detail.

My goal for this video is simple: alleviate the fear of being assigned on short options, and clearly explain why you do not have to exercise an option to realize any sort of profit. The profit that you could make at that moment will be embedded in the option’s price, which is called “intrinsic value.”

I hope this video helps. Sorry for the seriousness, but this is important! I receive questions every day from confused traders in regards to exercise/assignment, and I want to bury this fear/confusion once and for all!

Be sure to leave a comment down below with any questions you may have!

=== RECOMMENDED VIDEOS/RESOURCES ===

Call Options 101:

Implied Volatility Explained:

Stock Options Trading 101:

Top 13 Stock Market Mistakes:

How to Buy a Stock:

How to Short a Stock:

Options Trading For Beginners (PLAYLIST):

tastytrade Tutorials (PLAYLIST):

Option Pricing EXPLAINED:

Options Trading 101:

source

ShareTweetSendSharePin

Related Posts

Strong jobs data throws off Fed’s rate cut timeline
Trade Tube

Strong jobs data throws off Fed’s rate cut timeline

June 12, 2025
Warner Bros. Discovery is getting a huge makeover
Trade Tube

Warner Bros. Discovery is getting a huge makeover

June 12, 2025
Apple unveils a big makeover at WWDC
Trade Tube

Apple unveils a big makeover at WWDC

June 12, 2025
How a U.S. recession could upend the travel industry
Trade Tube

How a U.S. recession could upend the travel industry

June 12, 2025
Next Post
How To Thrive After A Break-Up! – FTG

How To Thrive After A Break-Up! - FTG

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
Trump admin. cancels Moderna funding to help develop bird flu vaccine

Trump admin. cancels Moderna funding to help develop bird flu vaccine

June 9, 2025
Chipotle using AI to open new locations with short time frame

Chipotle using AI to open new locations with short time frame

June 10, 2025
Trump says he warned Netanyahu against taking actions which could jeopardize Iran deal

Trump says he warned Netanyahu against taking actions which could jeopardize Iran deal

June 10, 2025

About

Learn more

Our Services

Legal

Privacy Policy

Terms of Use

Bloggers

Learn more

Article Links

Contact

Advertise

Ask us anything

©2020- TradePoint.io - All rights reserved!

Tradepoint.io, being just a publishing and technology platform, is not a registered broker-dealer or investment adviser. So we do not provide investment advice. Rather, brokerage services are provided to clients of Tradepoint.io by independent SEC-registered broker-dealers and members of FINRA/SIPC. Every form of investing carries some risk and past performance is not a guarantee of future results. “Tradepoint.io“, “Instant Investing” and “My Trading Tools” are registered trademarks of Apperbuild, LLC.

This website is operated by Apperbuild, LLC. We have no link to any brokerage firm and we do not provide investment advice. Every information and resource we provide is solely for the education of our readers. © 2020 Apperbuild, LLC. All rights reserved.

No Result
View All Result
  • Main
  • AI & Technology
  • Stock Charts
  • Market & News
  • Business
  • Finance Tips
  • Trade Tube
  • Blog
  • Shop

© 2023 - TradePoint.io - All Rights Reserved!