When exercised, theres no fast taxable cash flow, and when held to the essential time period, any earnings on sale is taxed as extended-phrase money gains as opposed to normal earnings.
A longer expiration is likewise beneficial as the alternative can keep time worth, although the stock trades more info under the strike rate. A choices time benefit decays as expiration methods, and options prospective buyers dont want to watch their ordered options decline in price, likely expiring worthless In the event the stock finishes down below the strike cost.