Why Should You Exercise or Abandon In-the-Money Options Early?
@TigerPM：
For beginners in options trading, there's a common belief: if your options are profitable, you either close the position or wait until expiration to exercise them. Early exercise, they think, is a waste of the option's time value. However, there are situations where exercising early is probably the smarter move. When is early exercise a wise choice? Firstly, consider a scenario where the price of the underlying stock has surged, making a call option deeply in-the-money (or, conversely, a put option in the case of a significant drop in stock price). While this is great news, deeply in-the-money options often suffer from poor liquidity. If you decide to secure your profits, you might find the bid-ask spread eats into your gains due to this lack of liquidity. Exercising the option early can b