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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: BDR who wrote (1821)8/6/2001 7:13:37 PM
From: Dr. Id   of 5205
 
If you write calls on dividend paying stocks you can risk being called
out on or near the ex-dividend date. (p. 20, ibid.) It happened to me with calls on JPM. I have read the pertinent passage several times. I still
don't understand it.

That is why I am, still, respectfully yours,

dummy DR


Dale,

I should also add that if you write Puts, and the stock falls significantly, you have a decent chance of having the stock put to you before the expiration date. It happened to me twice last year, in which stock was put to me MONTHS before the expiration of some fairly far out puts that I'd sold.

Dr.Id@learningthehardway...again.doh!
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