Options Mechanics: What Is Exercising an Option (Exercise)?
Title: Exercising an Option: How and When to Trigger Your Right? 🎯📜
Content:
Exercising an option (Exercise) means turning your contract into a real position on the underlying asset.
💡 The two main styles:
American Style: The option can be exercised at any time before its expiration date.
European Style: The option can only be exercised on the exact expiration date (the most common standard on crypto markets).
In practice, most traders sell their option back before maturity to collect the premium without exercising the underlying.
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