▶ Full Post Text
We *call* this the weekly Safe Haven thread, but it might stay up for more than a week.
For the options questions you wanted to ask, but were afraid to.
**There are no stupid questions.** **Fire away.**
This project succeeds via thoughtful sharing of knowledge.
**You, too, are invited to respond to these questions.**
This is a weekly rotation with past threads linked below.
----
###**BEFORE POSTING, PLEASE REVIEW THE BELOW LIST OF FREQUENT ANSWERS.** [.](https://www.reddit.com/r/options/wiki/faq/subreddit_resources)
[..](https://www.reddit.com/r/optionsmods/wiki/)
---
**As a general rule: "NEVER" EXERCISE YOUR LONG CALL!**
A common beginner's mistake stems from the belief that exercising is the only way to realize a gain on a long call. It is not. Sell to close is the best way to realize a gain, almost always.
**Exercising throws away [extrinsic value](https://www.reddit.com/r/options/wiki/faq/pages/extrinsic_value) that selling retrieves.**
**Simply sell your (long) options, to close the position, to harvest value, for a gain or loss.**
**Your break-even is the cost of your option when you are selling.**
**If exercising (a call), your breakeven is the strike price plus the debit cost to enter the position.**
Further reading:
**[Monday School: Exercise and Expiration are not what you think they are.](https://www.reddit.com/r/options/comments/m5r8mi/monday_school_exercise_and_expiration_are_not/)**
**As another general rule, don't hold option trades through expiration.**
Expiration introduces complex risks that can catch you by surprise. Here is just one [horror story](https://www.reddit.com/r/options/comments/ipqkua/fridays_tsla_lesson_close_positions_before/) of an expiration surprise that could have been avoided if the trade had been closed before expiration.
---
**Key informational links**
• [Options FAQ / Wiki: Frequent Answers to Questions](https://www.reddit.com/r/options/wiki/faq)
• [Options Toolbox Links / Wiki](https://www.reddit.com/r/options/wiki/toolbox/links)
• [Options Glossary](https://www.optionseducation.org/referencelibrary/optionsglossary)
• [List of Recommended Options Books](https://www.reddit.com/r/options/comments/8qfs14/options_book_list_review_of_all_books_that_helped/)
• [Introduction to Options (The Options Playbook)](https://www.optionsplaybook.com/options-introduction/)
• [The complete r/options side-bar informational links (made visible for mobile app users.)](https://www.reddit.com/r/options/about/sidebar)
• [Characteristics and Risks of Standardized Options (Options Clearing Corporation)](
https://www.theocc.com/about/publications/character-risks.jsp)
• [Binary options and Fraud (Securities Exchange Commission)](https://www.sec.gov/files/ia_binary.pdf)
[.](https://www.reddit.com/r/options/wiki/faq/subreddit_resources)
----
**Getting started in options**
• [Calls and puts, long and short, an introduction (Redtexture)](https://www.reddit.com/r/options/wiki/faq/pages/basics)
• [Options Trading Introduction for Beginners (Investing Fuse)](https://investingfuse.com/options-trading-for-beginners/)
• [Options Basics (begals)](https://www.reddit.com/r/options/comments/gh9vpl/options_basics/)
• [Exercise & Assignment - A Guide (ScottishTrader)](https://www.reddit.com/r/options/wiki/faq/pages/exercise)
• [Why Options Are Rarely Exercised - Chris Butler - Project Option (18 minutes)](https://www.youtube.com/watch?v=PsZsqiBFnmo)
• [I just made (or lost) $___. Should I close the trade? (Redtexture)](https://www.reddit.com/r/options/comments/eunnko/noob_safe_haven_thread_jan_27_feb_02_2020/fg6jjjz/)
• [Disclose option position details, for a useful response](https://www.reddit.com/r/options/wiki/faq/pages/trade_details)
• [OptionAlpha Trading and Options Handbook](https://optionalpha.com/handbook)
• [Options Trading Concepts -- Mike & His White Board (TastyTrade)(about 120 10-minute episodes)](https://www.youtube.com/playlist?list=PLPVve34yolHY43YaBegHMzN9WjrTnQfFr)
• [Am I a Pattern Day Trader? Know the Day-Trading Margin Requirements (FINRA)](https://www.finra.org/investors/learn-to-invest/advanced-investing/day-trading-margin-requirements-know-rules)
• [How To Avoid Becoming a Pattern Day Trader (Founders Guide)](https://foundersguide.com/pattern-day-trader/)
---
**Introductory Trading Commentary**
• **[Monday School Introductory trade planning advice (PapaCharlie9)](https://www.reddit.com/r/options/wiki/faq/pages/mondayschool)**
**Strike Price**
• [Options Basics: How to Pick the Right Strike Price (Elvis Picardo - Investopedia)](https://www.investopedia.com/articles/active-trading/021014/options-basics-how-pick-right-strike-price.asp)
• [High Probability Options Trading Defined (Kirk DuPlessis, Option Alpha)](https://www.youtube.com/watch?v=DcWHh2co80M)
**Breakeven**
• [Your break-even (at expiration) isn't as important as you think it is (PapaCharlie9)](https://www.reddit.com/r/options/comments/m0m7at/monday_school_your_breakeven_isnt_as_important_as/)
**Expiration**
• [Options Expiration & Assignment (Option Alpha)](https://www.youtube.com/watch?v=OnUsu1y1W9w)
• [Expiration times and dates (Investopedia)](https://www.investopedia.com/terms/e/expiration-time.asp)
**Greeks**
• [Options Pricing & The Greeks (Option Alpha) (30 minutes)](https://www.youtube.com/watch?v=kCJcEOYuuII)
• [Options Greeks (captut)](https://www.reddit.com/r/options/comments/hl8i2n/option_greeks_101)
**Trading and Strategy**
• [Fishing for a price: price discovery and orders](https://www.reddit.com/r/options/wiki/faq/pages/introduction#wiki_minimizing_bid-ask_spreads_.28high-volume_options_are_best.29)
• [Common mistakes and useful advice for new options traders (wiki)](https://www.reddit.com/r/options/wiki/faq/pages/introduction#wiki_common_mistakes_and_useful_advice_for__new_options_traders)
• [Common Intra-Day Stock Market Patterns - (Cory Mitchell - The Balance)](https://www.thebalance.com/common-intra-day-stock-market-patterns-1031456)
• [The three best options strategies for earnings reports (Option Alpha)](https://optionalpha.com/blog/the-three-best-option-strategies-for-earnings)
---
**Managing Trades**
• [Managing long calls - a summary (Redtexture)](https://www.reddit.com/r/options/wiki/faq/pages/managing_long_calls)
• [The diagonal call calendar spread, misnamed as the "poor man's covered call" (Redtexture)](https://www.reddit.com/r/options/wiki/faq/pages/diagonal_calendars)
• [Selected Option Positions and Trade Management (Wiki)](https://www.reddit.com/r/options/wiki/faq/pages/positions)
**Why did my options lose value when the stock price moved favorably?**
• [Options extrinsic and intrinsic value, an introduction (Redtexture)](https://www.reddit.com/r/options/wiki/faq/pages/extrinsic_value)
**Trade planning, risk reduction, trade size, probability and luck**
• [Exit-first trade planning, and a risk-reduction checklist (Redtexture)](https://www.reddit.com/r/options/wiki/faq/pages/trade_planning)
• [Monday School: A trade plan is more important than you think it is (PapaCharlie9)](https://www.reddit.com/r/options/comments/mpk6yf/monday_school_a_trade_plan_is_more_important_than/)
• [Applying Expected Value Concepts to Option Investing (Option Alpha)](https://optionalpha.com/blog/how-to-calculate-expected-value)
• [Risk Management, or How to Not Lose Your House (boii0708) (March 6 2021)](https://www.reddit.com/r/options/comments/lyp1uc/risk_management_or_how_to_not_lose_your_house/)
• [Trade Checklists and Guides (Option Alpha)](https://optionalpha.com/members/guides-checklists)
• [Planning for trades to fail. (John Carter) (at 90 seconds)](https://youtu.be/N5_OkdvPmUI?t=90)
• [Poker Wisdom for Option Traders: The Evils of Results-Oriented Thinking (PapaCharlie9)](https://www.reddit.com/r/options/comments/qfq82a/poker_wisdom_for_option_traders_the_evils_of/)
**Minimizing Bid-Ask Spreads (high-volume options are best)**
• [Price discovery for wide bid-ask spreads (Redtexture)](https://www.reddit.com/r/options/wiki/faq/pages/price_discovery)
• [List of option activity by underlying (Market Chameleon)](https://marketchameleon.com/Reports/optionVolumeReport)
**Closing out a trade**
• [Most options positions are closed before expiration (Options Playbook)](https://www.optionsplaybook.com/options-introduction/closing-option-position/)
• [Risk to reward ratios change: a reason for early exit (Redtexture)](https://www.reddit.com/r/options/wiki/faq/pages/risk_reward_and_exits)
• [Guide: When to Exit Various Positions](
https://www.reddit.com/r/options/wiki/faq/pages/whentoexit)
• [Close positions before expiration: TSLA decline after market close (PapaCharlie9) (September 11, 2020)](https://www.reddit.com/r/options/comments/ipqkua/fridays_tsla_lesson_close_positions_before/)
• [5 Tips For Exiting Trades (OptionStalker)](
https://www.reddit.com/r/options/comments/qtwsm5/5_tips_for_exiting_trades/)
• [Why stop loss option orders are a bad idea](https://www.reddit.com/r/options/wiki/faq/pages/stop_loss)
---
**Options exchange operations and processes**
• [Options Adjustments for Mergers, Stock Splits and Special dividends; Options Expiration creation; Strike Price creation; Trading Halts and Market Closings; Options Listing requirements; Collateral Rules; List of Options Exchanges; Market Makers](https://www.reddit.com/r/options/wiki/faq/pages/exchange_operations)
• [Options that trade until 4:15 PM (US Eastern) / 3:15 PM (US Central) -- (Tastyworks)](https://support.tastyworks.com/support/solutions/articles/43000435335-options-that-trade-until-3-15-pm-central-)
---
**Brokers**
• [USA Options Brokers (wiki)](https://www.reddit.com/r/options/wiki/faq/pages/brokers)
• [An incomplete list of international brokers trading USA (and European) options](https://www.reddit.com/r/options/wiki/faq/pages/brokers/)
---
**Miscellaneous: Volatility, Options Option Chains & Data, Economic Calendars, Futures Options**
• [Graph of the VIX: S&P 500 volatility index (StockCharts)](https://stockcharts.com/h-sc/ui?s=vix)
• [Graph of VX Futures Term Structure (Trading Volatility)](http://www.tradingvolatility.net/p/datasourceurldocs.html)
• [A selected list of option chain & option data websites](https://www.reddit.com/r/options/wiki/faq/pages/data_sources)
• [Options on Futures (CME Group)](https://www.cmegroup.com/education/files/options-on-futures-brochure.pdf)
• [Selected calendars of economic reports and events](https://www.reddit.com/r/options/wiki/faq/pages/calendars)
---
Previous weeks' Option Questions Safe Haven threads.
[Complete archive: 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026](https://www.reddit.com/r/options/wiki/faq/archive/safe_haven_2026)
---