OptionSpeed - Win Fast
The Truth About Option Exercise and Assignment Value
17:50
Traders often misunderstand the process of exercising options, leading to unnecessary fear regarding early assignment.
This podcast explains that options possess both intrinsic and extrinsic value, but exercising a contract only captures the intrinsic portion.
Because exercising requires sacrificing the extrinsic value—the remaining time and volatility premium—it is almost always more…