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 havewill 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.