when can put options be exercised
Choice #2: Exercise the call or put option early. By definition if you own a call option you have the right to buy stock at the strike price of the call option. If you exercise your call option, you will be given stock at the strike price of the call option. When you exercise a put option, you have the right to sell your stock at the strike price of the put option. Choice #3: Do nothing until option expiration. If the option is out-of-the-money (OTM)â¦it will expire worthless.
When exercising a call option, the owner of the option purchases the underlying shares (or commodities, fixed interest securities, etc.) at the strike price from the option seller, while for a put option, the owner of the option sells the underlying to the option seller, again at the strike price.