### Comment:
if the price of the underlying drops hard though why would the contract be exercised? Wouldn't it be better $$ wise to let it just expire worthless because the premium you payed for the contract will mean you loss money if you exercise it versus just buying the share at the lower price? (talking about calls here)

### REPLY:
Better for you, but the call holder is the one who has the option to exercise.  If you sell it at 3:30PM and it jumps up $2 or something by 4:00PM then you'll be in the red.  Maybe he'll decide he'd rather have the shares than the call and just exercise it on you and sell them pre-market or some shit.  Fabricate whatever reasons you want I'm not saying its a sure thing but it does happen, that's the risk you take selling ITM.

### END.