Most options are never exercised. This simple fact is due to two reasons. First, any option that is out-of-the-money, or worthless, is not going to be exercised. But second, even the options that are in-the-money, and have some degree of “moneyness”, will rarely be exercised. This is simply because anytime an option is exercised, the long side of the option’s contract is forgoing any extrinsic value left in the option.