When exercised, theres no speedy taxable money, and when held with the demanded interval, any revenue on sale is taxed as extended-expression capital gains as an alternative to regular revenue.
An extended expiration can also be handy because the solution can retain time price, even when the stock trades underneath the strike cost. An alternatives time value decays as expiration ways, and options buyers dont want to observe their purchased options decrease in benefit, possibly expiring worthless click here If your stock finishes below the strike price tag.