According to OCC statistics for year 2008 (for activity in customer and firm accounts), the breakdown is as follows: Closing Sales - 69.4% Exercised - 11.6% Unexercised at Expiration - 19% So, in 2008, 19% of all options positions in customer and firm accounts expired unexercised; 11.6% of these positions were exercised; and 69.4% of these positions were closed out through sales. My impression was always that you could either A) excersize or B) let it expire worthlessly. This represents a third option. Im curious to know what the term "closing sales", or "closed out through sales" means? Anyone that could answer this would be greatly appreciated.