™Exercising a standard $50 strike call generally means purchasing its specified deliverable at the strike, not receiving the option premium back.
Options
Exercise
Using the contractual right to buy or sell the underlying asset at the strike price.
Plain-English context
Put the definition to work.
Exercise and selling the option are different choices. Exercising may surrender time value and create a new funded share position.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. OCC / Options Industry Council — options basics