Why Might an ITM American Option Not Be Exercised Immediately? ▴ Learn

Why Might an ITM American Option Not Be Exercised Immediately?

An In-The-Money (ITM) American option is often not exercised immediately because the option still holds time value. Exercising early sacrifices this time value.

It is usually more profitable to sell the option in the market for its premium (intrinsic + time value) rather than exercising and only capturing the intrinsic value.

Why Is Early Exercise of an American Call Option on a Non-Dividend-Paying Stock Generally Not Optimal?

Why Is It Generally Not Optimal to Exercise an American Call Option Early?

Why Is an American Call Option on a Non-Dividend-Paying Stock Rarely Exercised Early?

What Is the Opportunity Cost of Exercising a Deep In-the-Money American Call Option Early?