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Technology Stocks : Dell Technologies Inc.
DELL 120.53+0.7%Jan 16 9:30 AM EST

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To: Chuzzlewit who wrote (153332)2/9/2000 2:14:00 AM
From: Sr K  Read Replies (1) of 176387
 
One other difference between selling naked puts vs. establishing a covered call - especially for those here who haven't done it and are thinking about it:

Short in the money puts often are exercised early, sometimes a week or two but often 2 or 3 days before expiration, while calls almost always go to expiration day, and often can be closed out or rolled over in the couple of minutes after 4 pm Eastern Time. If you've used the minimum margin that short puts allow, you can be asked to put up the additional margin based on the exercise. Bullish (or bearish) put spreads have the same "feature". The short leg of the hedge may be lifted when you least expect it, so always expect it.
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