when do you decide if to execute an option?

Question

I own a call option that expires on Friday.
When do I decide whether to execute the option? The Saturday after?

Bob Baerker · Accepted Answer

American style options (equities) can be exercised any time before expiration.  European style options (most indexes) can only be exercised at expiration.
The OCC automatically exercises all options that expire one cent in-the-money.  However, to be sure, exercise by 5:30 PM on the expiration date.
Read the following for the technical details:
Expiration date of the option contract:
Rule 1100. Exercise of Options Contracts

D Stanley · Answer

You have to exercise the option at the time of expiry for a European option, or anytime before or at expiry for an American option. Most equity options are American, so you can exercise anytime before or at expiry, but not after.
At expiry, if you don't specify anything through your broker, the options clearing house will "auto-exercise" your option if it's in-the-money. If it's out-of-the-money, then it makes no sense to exercise so the clearing house lets it expire worthless.
Before expiry, it only makes sense to exercise in rare situations, usually involving an upcoming dividend payment. It's much more common for options to be sold to close the position rather than exercising, since you can capture any time value that may be left before expiry.

when do you decide if to execute an option?

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