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When Do Buyers Exercise Call Options?

Buyers usually exercise a call option when the stock price of the underlying stock has risen above the strike price. To use industry terminology you can say that a buyer exercises an option when it in-the-money.

Most often, a buyer exercises an option on the expiration day, or sometimes the day before the expiration date. So buyers hold on to options contracts until the end or near the end of the options expiration. If you are selling (or writing) options, then you should expect your stocks to be called if the option you sold is in-the-money.

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