Exercising call option?
1 year ago
Usually a call option is only exercised at the expiration date. Right now with about 2 months to go, I believe you have to sell your option and then buy the stock. However, since I have never done that, I suggest you call a local broker at Scottrade as they have offices almost anywhere, and get the exact procedure to be followed.

TAG:procedure anywhere believe offices option
Best Answer
It is almost always more profitable to simply sell to close a profitable call options (or put options) trade rather than exercise for the underlying stock and then selling those stocks for profit in the market. However, if you really find the need to exercise an option, all you have to do is click on the "Exercise" link beside your position rather than "Trade".

I just answered this exact same question in extreme detail at http://www.optiontradingpedia.com/answer... which you might want to check out because its really way too long and detailed to post here.

In that tutorial, I outline the only few scenarios in which exercising is better than selling (including ex-dividend) and explain why even with those scenarios (even in the case of ex-dividend), professional options traders would still prefer to simply sell rather than exercise.
Other Answers
It's easier and faster to sell the contracts rather than exercise them. If you exercise you will have to come up with the money to pay for the 100 shares you will be buying at 15.00

You can call Scottrade to exercise, if you decide that's the way you want to go.
if you think its going to go below 17.50, put it up for sale. the more it goes up, the better.
You failed to mention if you are still bullish the stock, or think it may go down soon and wish to close the position. You also failed to mention "when" you might close the position.

If you are bullish the stock and want to hold the position, you have three choices.
1. Do nothing, and/or hold the current position until September.
2.. Roll the Sep call into a later month, like Dec.
3. Exercise in order to hold the stock.

If you are bearish the stock, or just want to close the position, there is no reason to exercise the option. Simply sell the call to close the option position.

In most cases, options should not be exercised before expiration because doing so gives away inherent value. Selling them would almost invariably yield more.

Early exercise is a possibility whenever the benefits of being long the underlier outweigh the cost of surrendering the option early. For instance, on the day before an ex-dividend date, it may make sense to exercise an equity call option early in order to collect the dividend. In general, equity call options should only be exercised early on the day before an ex-dividend date, and then only for deep in-the-money options.