Will exercise will reset the long-termness of the option? it makes sense although i did not like it

G

ggelitetrader000

I have bought 2 options for Jan 21 expiration date and planning to hold for until next year so that tax will be due on next year. It is a long term hold. However I bought it last April so by considering the expiration date it is expiring less than a year so I dont think it is eligible for long-term hold thus gain.

I am thinking to exericse then and continue holding. But my question is does exercise will reset or continue the long-termness of the options?

Lets say I exercise around Aug for the options I purchased on April. So by that time I exercised and purchased the stock according to option contract, will the option holding period between April to Aug will count toward 1 year of long term gain?
 
Not sure why would you want to do that since when you exercise an option then you’ll lose all the remaining premium / extrinsic value. Most options are never exercised, or sometimes may be exercised several days before expiration and/or if they’re deep ITM.
Unless you mean selling your option and closing your position?
Generally it’s difficult to understand what you’re trying to do and why.
 
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guru said:
Not sure why would you want to do that since when you exercise an option then you’ll lose all the remaining premium / extrinsic value. Most options are never exercised, or sometimes may be exercised several days before expiration and/or if they’re deep ITM.
Unless you mean selling your option and closing your position?
Generally it’s difficult to understand what you’re trying to do and why.
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i suggest that you improve your English comprehension ability and come back.
 
ggelitetrader000 said:
i suggest that you improve your English comprehension ability and come back.
More...
Most funny thing I've ever red here (given that the guy seemingly genuinely (is that English?) wants to help you with a good advice)...

Although very rude thanks for a good laugh...
 
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