One of the most common mistakes new options traders make is thinking that exercising is the only way to realize profits. In reality, selling to close is almost always the better choice. Exercising directly throws away the time value of the option, while selling allows you to recover that value. The breakeven point when you buy an option is the cost you paid. If you choose to exercise, your cost becomes the strike price plus the premium you paid when buying the option. Another important principle: try not to hold options positions until expiration. The complex risks that come with expiration can catch you off guard. There are countless cases showing that if traders closed their positions before expiration, they could have completely avoided unexpected losses. For beginners, it’s recommended to first understand a few basic concepts: the fundamental differences between call and put options, the time value and intrinsic value of options, and the meaning of the Greek letters. These are the foundational logic for building any strategy.