As an option buyer, there are two ways you can take profits before expiration: you can either sell the contract or exercise it. However, I will demonstrate very clearly in this video that in almost all cases you should NEVER exercise a call option or a put option early. Doing so will cause you to literally light a significant portion of your profits on fire! The reason for this has to do with the concept of extrinsic value, which will be thoroughly discussed in this video alongside detailed examples of buying and exercising call options in ThinkOrSwim! 🔥 JOIN ME ON SKILLSHARE TOO!!! 🔥 *** Signing up for a Premium Skillshare membership with any of the links provided below will give you a 1 month FREE trial! *** Introduction to Options: https://skl.sh/32z1x6f Options Trading Strategies: https://skl.sh/2PVmouS Options Trading Mechanics: https://skl.sh/2xwk1co ThinkOrSwim Tutorial: https://skl.sh/3gz4CtD Beginner's Guide to Stock Market Speculation: https://skl.sh/3h2Fdub How To Invest In The Stock Market Using Options: https://skl.sh/2Qf67nK The Power of Selling Naked Options: https://skl.sh/3a03JI0 How To Properly Track Your Trades: https://skl.sh/2R4NNi7 Understanding Stock Market Behavior: https://skl.sh/3hjEthu How to Become a Profitable Trader: https://skl.sh/3nEUuCP Covered Call & Covered Put Strategies: https://skl.sh/3nMqKTV A Statistical Approach to Day Trading (Scalping): https://skl.sh/3pDFwNw Beginner's Guide to Stock Market Investing: https://skl.sh/3p56f6p The All Seasons Strategy: https://skl.sh/3bh7RSG The Power of Stock Market Diversification: https://skl.sh/3b6cMqL Chapters: 0:00 Introduction 1:21 Brief Refresher On Extrinsic Value 2:58 Long NUE Call Example Setup 4:48 Calculating The Call Extrinsic Value 7:13 Calculating Profits From Selling The Call 8:08 Calculating Profits From Exercising Early 9:35 The One Situation Where Exercising Early Is Better #optionstrading #tradinglessons #optionpricing