Why do stock options get exercised before expiry?


I’ve had two covered calls I sold get exercised about ~ 3 days before expiration date, both in the past 3 weeks. Is this pretty common if you hold something close until the expiry? And given the stock could increase or decrease I don’t understand why someone would exercise them with some extrinsic value still on there.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *