so normaly will no one like to exercise, but there is someone maybe will do like that.
IF there only few days to expire,time value only 0.10, the price is now : 10.50 and the Call_10.00 will maybe 0.6( =0.5+0.1), then the buy side maybe exercise. Your 1000 share gone.
The key point is , DO you want to sell your 1000 share @ (10.00+0.7), and if the price go down, do you still want to keep it?
IF there only few days to expire,time value only 0.10, the price is now : 10.50 and the Call_10.00 will maybe 0.6( =0.5+0.1), then the buy side maybe exercise. Your 1000 share gone.
The key point is , DO you want to sell your 1000 share @ (10.00+0.7), and if the price go down, do you still want to keep it?