| | Example of CALL Options | Note: All input variables are highlighed in "yellow". |
| | Assumptions |
| | Options (ticker) | GOOG | Note: we used option contract on GOOG as an example of early exercise. |
| | Premium | $ 65.00 | Note: This is the option price/premium ("Last Price" shown in "Trading" option in StockTrak simulation) when you purchased the call option. |
| | Strike Price | $ 1,080.00 |
| | Numer of Shares Per Contract | 100 | Note: See information on "Contract Size" when using "Trading" option in StockTrak simulation and adjust this number as appropriate. |
| | Quantity | 10 | Note: This is the "Quantity" you choose in "Trading" option in StockTrak simulation. |
| | Maturity | 21-Dec-18 |
| | Date (bought) | 15-Oct-18 |
| | Date (Early Exercise) | 16-Oct-18 | Note: This is the date of your Early Exercise of options. |
| | Stock Price on 'Early Exercise Date' | $ 1,200.00 | Note: This is the Stock Price on the date of your Early Exercise of options. |
| | Estimation of Profits |
| | | Profit Per Contract | Total Profit | Total Profit (Net of Premium) |
| | Profit (exercising CALL Options) | $ 12,000.00 | $ 120,000.00 | $ 55,000.00 |
| | | | | (Note: in the above scenario, you may exercise the call option early; however, you can no longer *sell* this call option once you decided early exercise of the option) |
| | Example of PUT Options | Note: All input variables are highlighed in "yellow". |
| | Assumptions |
| | Options (ticker) | GOOG | Note: I used option contract on GOOG as an example of early exercise. |
| | Premium | $ 45.00 | Note: This is the option price/premium ("Last Price" shown in "Trading" option in StockTrak simulation) when you purchased the put option. |
| | Strike Price | $ 1,080.00 |
| | Numer of Shares Per Contract | 100 | Note: See information on "Contract Size" when using "Trading" option in StockTrak simulation and adjust this number as appropriate. |
| | Quantity | 10 | Note: This is the "Quantity" you choose in "Trading" option in StockTrak simulation. |
| | Maturity | 21-Dec-18 |
| | Date (bought) | 15-Oct-18 |
| | Date (Early Exercise) | 16-Oct-18 | Note: This is the date of your Early Exercise of options. |
| | Stock Price on 'Early Exercise Date' | $ 1,200.00 | Note: This is the Stock Price on the date of your Early Exercise of options. |
| | Estimation of Profits |
| | | Profit Per Contract | Total Profit | Total Profit (Net of Premium) |
| | Profit (exercising PUT Options) | $ - 0 | $ - 0 | $ (45,000.00) |
| | | | | (Note: in the above scenario, you don't exercise this put option early and you don't need to record any losses including the cost of premium) |
valentinofargez
ModelofExercisingOptions.xlsx
