have you exercised options? tax implications how it is done

[ggelitetrader000]

It's not always the case with exercising that you have time premium. Especially if they are deep in the money. Like the TSLA $10 call options have a bid @ $987 even though the last is $1003.96 You'd lose almost $700 by selling those options but if you excercised them, you could sell really close to that $1003.96. Maybe 20 or 30 cents off the last instead of $7 off.

yes if you have DITM, the time becomes small fraction of the value right

 

[shelleybrown]

When you plan to start your trading with options, it is important to be aware of the tax implications connected to it. Although I am new to trading and still gaining information about it, I have come across the fact that there would not be any tax incurred when you keep holding onto your stocks purchased. Read more blogs about the tax-related help with options.