EXERCISING OPTIONS ON ROBINHOOD (HOW & WHEN TO DO IT) - EP. 48

Exercising an options contract is something that rarely happens. In this video I will talk about how to exercise an options contract on Robinhood and why most people never do (and the rare instances where you might want to exercise a contract).

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[dekonfrost]

Of all the assholes on the tube in the stock space your explanation is simple and clear to the point without being condescending. Well done

[rosannakirkland]

I actually bought and exercised 2 contracts this week. Both were $2.50 strike price, and expired next week. One for PLTR and one for TTCF. I did this because both contracts including fees we're the same total price as me adding 100 more shares. My average cost basis wouldn't have moved much by buying regular, but by doing the option I was able to reduce my cost basis for my entire positions over $3 dollars each, moving my position from red to green immediately. I like using this strategy when I'm in the red on something that I'm holding long term and adding to, and already have a few hundred other shares of.

[rickyviengxay]

So for example, if someone had a strike of $20 for this Friday for a stock that is over 3x that price (They believe it will grow even more). Would it not be smart to exercise the right to buy 100 shares at 20, rather than say 50 shares at whatever it ends at Friday? Which is actually the better net gain?

[BSConservativeGOAT]

Oh man THANK YOU SO MUCH!!! Ive asked and asked if you needed the capitol to exercise a call option and finally got an answer. Saved me big time!!

[Timmyjl]

So how do I get the profit? Do I have to exercise my put when it hits the breakeven price?

[nexar]

if i buy call options $20 and currently i'm in profits like $22.5 current price is that good to go for exercise, my breakeven price $21.5, also i have left 4 days for expire. please answer me caz im pretty much new in stock

[fatassassin]

So if I bought 10 contracts at $5, but my expiration is a year from now. Let's say it goes up and it at $10 a contract. Is it best to exercise it? Because I would be getting them at $5 verse paying $10. But would I initially make a profit from buying at $5? Would I actually be up 5k? Because I see buy options as a premium to buy shares in companies I plan to hold for a long time.

[andyswoodyrubnips]

if you own shares can you take a sell put and exercise it above the money to get more profit or no lol

[EMEL]

If I bought amc June 25 28c at .91 and its currently at 40.25, can I exercise the contract even if I have no buying power? Just purely off contract value? And if so, thats 2800 plus 91 contract price, do i get 1100 credit for what is left over?

[TechConversations]

Have you ever exercised an option or have you ever been exercised on (assigned)?

[Xektt]

Newby question: Can assignment happen during trading hours? i.e.: I sold a put/call, I am short, and then suddenly that short position just disappears from my portfolio during the trading day because I was assigned? Or does assignment only ever happen after trading hours?

[thedude]

would i be able to exercise the option if i have profited more than it will cost to purchase the shares, or do it have to be in my buying power

[hollyramos]

If I already have 100 shares of a stock and have a put option and sold that put option am I selling the 100 shares I own? The stock has gone up not down so I’m making money on the 100 I have losing on the put. Also if you bought a call option for $120 and the strike price is $2.50 and you exercised it and the stock price is $5 wouldn’t you have a chance to potentially make more money by exercising it and just pay the $500 you’d still be making $130? I’m new to option trading I’ve done okay so far but curious about the exercise of options Robinhood did that for me on one that was worthless but then 2 days later I made 2k off of it because it way up so now I want to figure out should I exercise them or not to

[zeppdogg]

I have $15 calls of AMC that expire today, should I exercise? Or just sell them ?

[joshwenzel]

Sorry if this is dumb but I just want to understand. Brand new to options. I SOLD a put on MTTR $22.50 for 01/19/24 for $800. Currently it says the market value is $-925. Does this mean I'm down that much? Total return says $-125... says chance of profit is 53% as well, can you explain?

[morrisman]

what about buying put at price below market price for advantage

[blujay]

Would it make sense to exercise a deep itm call

[jron]

new to options. What happens on Webull if u choose not to exercise OTM call option on expiration date?

[fatmirsejdini]

I GOT EXERCISED LAST NIGHT WHILE THE MARKET WAS CLOSED. IT WAS WORKHORSE. IT WAS A CREDIT SPREAD SO IT WASNT THAT BAD. BUT ONLY 1 SIDE WAS EXERCISED. MY ? IS, HOW THE FUCK DID I GET EXERCISED WHILE THE MARKET CLOSED AND WHAT SUSPICIOUS TIMING CUZ EVERY GROWTH STOCK IS UP TODAY. I FELL THAT THE SYSTEM IS RIGGED

[joesmith]

how do you close out your option position on the robinhood app?