Hello, I was doing a delta neutral strategy using deep in the money covered calls, well it was supposed to be delta neutral I opened it to completely protect me from all stock moves (up or down) temporarily. I am not collecting premium from this trade. anyway, lets say XYZ is trading at 100 (delta 1.00 because it is stock) and I sold XYZ 75 Call (delta -1.00 because it is short ITM call) the bid and ask on the 75 call was 10% apart, and I totally caved to the specialist on this one and got in close to the bid side. so because my broker shows me profit/loss based on the theoretical price of the option (and/or its midpoint between bid and ask), my account shows an instant loss. its like a 6% paperloss. now, my problem is that I already know I won't be able to exit this position on a favorable side of the bid/ask, no matter what the stock does. so instead of buying to close the short calls, can I just exercise the contracts and close the position for NO loss? the idea is that the short shares will neutralize the long shares (as they will be equivalents) **there is no premium left in these short calls, so I won't be missing out on theta if I exercise** my logic here is that the theoretical price shows the paper loss but as long as I have the contract at all, its theoretical price doesn't matter since I can just neutralize the entire position upon exercise.