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Why Options Are Rarely Exercised (Options Traders MUST Know This)
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Become an Options Trading PRO (Options Trading for Beginners) - Why Options Are Rarely Exercised (Options Traders MUST Know This)

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16 learners

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This course includes

  • 16 hours of video
  • Certificate of completion
  • Access on mobile and TV

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📩 Get the library of my best options guides & presentations → 160+ page Options Trading for Beginners guide and bonus content: https://projectoption.com/free-guide ⚡ See your risk before you trade → visualize the P/L of any trade, and model any trade adjustment: https://projectoption.com 💥 The simplest, best-performing options strategy from my research: https://projectoption.com/data-driven-options-strategies ☑️ Open and fund a tastytrade account and get 3 months of the Option Modeler and IV Screener ($147 value): https://projectoption.com/tastytrade 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: https://youtu.be/fUZHmJAvN30 Implied Volatility Explained: https://youtu.be/H-NHZq-skFo Stock Options Trading 101: https://youtu.be/3bELT5FZCic Top 13 Stock Market Mistakes: https://youtu.be/4ouAEwIBFs4 How to Buy a Stock: https://youtu.be/5yTm1YkbccM How to Short a Stock: https://youtu.be/eWzdJoEBQDw Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo tastytrade Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA Options Trading 101: https://youtu.be/3bELT5FZCic tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.

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