Options aren’t stocks. They are an option to buy the stocks. Exercising your options means buying the stocks. They options contract has a price for stocks set u

Options aren’t stocks. They are an option to buy the stocks. Exercising your options means buying the stocks. They options contract has a price for stocks set up front. Ideally the price of the stock has risen over time so when you exercise the option to buy the stocks, you are buying the stocks at a lower price than their current market value. Thus you make money.