How to exercise option...
Hey guys, I have a stupid question. I'm using Investopedia's stock market simulator to gain some trading experience. How do I exercise an option after I've bought it? For example, I am holding an option in my portfolio, and all I see is "sell". How do I exercise the option and buy the underlying share for X price?
Thanks
Why do you need to in the simulator?
Sorry I don't really understand this question...I'm just wondering how I would actually use the option. Im just using the simulator to learn and try different option strategies I learned from my PM class
Like what kind of strat are you doing that you'd need to early exercise.
Can't I exercise anytime before the expiration date? I learned about protective puts, covered calls and straddles and I'd like to try these strategies on the simulator just to experiment. How do I exercise..?
Read up a bit more about early exercise. The majority of time its better to just sell the option rather than to exercise as there is still time value left, otherwise if you exercise you just get the intrinsic value and leave the time value on the table.
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