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REDDIT

Exercise a deep ITM leap option or sell and then buy shares?

O
Jun 1, 2026 · 03:36

Hi there, I bought a leap that expires in Jan 2027 with a strike price of $42. The premium for that was $13.60. The price of the stock is now at ~$240 with the value of the contract showing us $190.25 (after hours). The gains are at 1309%. I would like to own these stocks as I anticipate the stock to continue to increase in value up to 2030 (~$500-1000). Is it better to exercise the call or sell the stock closer to expiry and then purchase the stock from the profits? Submitting from Australia in case there are tax implications. Appreciate your help!