Options Trading Tutorial

Can a call be exercised below the strike price?

Hi, Can a call be exercised below the strike price? For example: Say you sell a call from ABC company and the stock is below the strike price can the holder manually exercise the call regardless if the strike price is reached or not? Thank you!

Public Comments

1. I guess in theory they could, but why would they???? If you purchase a call option with a strike price of $50, why would you exercise the option to buy the stock at $50 if the stock was trading at $45, you paid a premium to buy the option and $5 over market value for the stock, you just lost a ton of money. That's pretty stupid.
2. If you SELL/WRITE a call you don't have the right to exercise, the buyer does.He can exercises whenever/wherever he likes but rarely does. Especially if the price is below the strike; he would be stupid to do so; but you never know people do some strange things.