In theory, you can earn more by closing your position. Because option value = intrinsic value+time value, exercise can only earn intrinsic value. In the option trading market, the profit from closing the position actually comes from the difference between the purchase price and the selling price of the contract, and the decision-making power of closing the position depends largely on the player's grasp of the price change of the market contract and whether he can sell it when stepping on the highest point. In fact, this operation is relatively difficult. Generally speaking, the timing of options entering the market is relatively easy to find, while the timing of options entering the market is relatively difficult to grasp, so it is necessary to accumulate more trading experience.

Source Baidu: Caishun Option

What is the difference between closing an option and exercising an option?

In the process of option investment, the maturity date is the time that every investor needs to pay attention to. If you don't close your position or exercise your rights on the maturity date, the value of your option contract will be zero. In other words, after the option expires, investors will generally close their positions or exercise their formal rights. Option liquidation refers to the liquidation of option positions by reverse trading, and exercise refers to the settlement of underlying securities and funds on the exercise date to complete the transaction. The profit and loss of the former comes from the difference between royalties, while the profit and loss of the latter comes from the relationship between the intrinsic value of options and premium, in which the intrinsic value of call options = market strike price, while the put options are the opposite.

In the options trading market, there are two main ways for investors to make profits. One is to earn a premium difference by closing positions, but to gain income by exercising. Although both options are closed by exercise, investors no longer hold options, but the exercise will get corresponding future positions, and the closing will get option premium, which is the difference between the two.