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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Ira Player who wrote (7145)3/22/1998 5:46:00 PM
From: tuck   of 14162
 
Ira,

I can't say I know, but two ideas come to mind. The market maker could short the stock, which is probably the best, or buy puts. The latter is likely difficult if the options are lightly traded per your condition, and also involves premium decay: the MM would lose if the stock just sat there, or he couldn't sell.

Just my best guess, Tuck
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