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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Gary E who wrote (3297)1/20/2002 7:31:30 PM
From: Dan Duchardt  Read Replies (1) of 5205
 
Hal,

or better yet, if you see the stk gitting close to being called away..buy the call back, or buy the stock in anticipation of being called away?

If you have the money to buy the stock in anticipation, then you generally will not have a problem waiting for assignment. And if you buy back the short call, there is certainly not a problem. But there are those occasions when you get called out before expiration because somebody decides to exercise for one reason or another. Maybe the brokers have some threshold where they won't let the short call go too far ITM, but that sort of defeats the purpose of many spreads. I guess we all need more information, so I'll stop speculating.

Dan
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