Option Trading

  • Should You Ever Exercise an American Option Early?

    Should You Ever Exercise an American Option Early?

    When locking in profits makes sense — and when it costs you. TL;DR: What Does “Early Exercise” Even Mean? American options give you the flexibility to exercise at any time before or at expiration. That means: But just because you can doesn’t mean you should. The golden rule of options: Never exercise early unless the payoff exceeds the time value you’re giving

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