I have traded options, mainly calls for a number of years, and I am considering exercising a call for the first time. I have a Jan.'12 $190 AAPL call, that is up $11,260(122%) since purchase. Since I do agree with many of you that AAPL should go much higher in the next 12 mon. I am weighing the pros and cons of exercising this option and going long. Without the "why did you buy so far out" comments, please give me your opinions and why or why not to exercise. Thanks, J.
Why do you want to put in more money to exercise it so early? AAPL doesn't pay dividend. There is absolutely no benefit to own stock over owning DITM calls. If you want to exercise, wait until Jan. If you want to take profit, which I think you should, sell some front month $405 or $410 calls or roll it up to a higher strike like $250.