Closing versus exercise

Discussion in 'Options' started by AAAintheBeltway, May 17, 2004.

  1. If you have a deep in the money vertical, your alternatives are to close it out or let it go to automatic exercise. By letting it be exercised, you typically pay slighter more commish but avoid paying the spread to close out the options. Seems to me that is preferable. Am I missing something?
  2. arl


    You will find that it is typically cheaper to pay the spread rather than exercise.