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Who do I get my shares from if I exercise my call option?
I understand how call options work and under what scenarios I should exercise the call option. So my question is if I were to exercise my call option who would give me the 100 shares or so?
2 Answers
- ?Lv 58 years agoFavorite Answer
That would be the Options Clearing Corp or OCC. It is the regulating body that guarantees the performance of all options contracts and act as the counterparty to all options contracts. In essence, you are really trading options with the OCC through market makers instead of another options trader.
Source(s): http://www.optiontradingpedia.com/market_makers.ht... - Free tutorial on Market Makers - Common SenseLv 78 years ago
I've traded options for years and never exercised an Option. I don't know any traders that do. But... to answer your question..... the person that wrote the contract (that you purchased). The better question is..... why bother? Why not just sell the Option like the rest of us? At the very least, it's a much cheaper way to take your profit.
How many books on trading Options have you read? I suggest 2-3 as a minimum. Know "the Greeks" well... or you'll be losing money regularly.
