When exercised, theres no quick taxable revenue, and if held for your needed time period, any revenue on sale is taxed as lengthy-term capital gains rather than everyday money.
A longer expiration is usually valuable as the selection can keep time worth, although the stock trades under the strike rate. A more info choices time benefit decays as expiration methods, and options prospective buyers dont want to watch their acquired options decline in worth, likely expiring worthless When the stock finishes underneath the strike price.