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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: jjs_ynot who wrote (1302)	3/28/2000 10:39:00 AM
From: KFE	Read Replies (2) of 2317

Dave, Do you know the mechanics that are used to set up an "Unwind" Order for a covered call (buying the call and selling the stock). The bid/ask on the call is much larger that the bid/ask on the stock for the stock I currently have in a covered call. I haven't worked or dealt with a firm that takes this type of order but I know that some do. This is not really a contingent order but rather a combination limit order. If the bid/asked on the call is wide then the amount the firm could shave off the inside bid on the underlying would appear to be not enough to meet your limit price. You would probably be better off just legging out since it doesn't seem that you must unwind because of some urgent reason. If that was the case you should just pay the bid/asked and exit. The problem with legging out of the call side first will be that if you split the bid/asked and the option is thinly traded then you probably won't get executed unless the underlying is moving down and you will lose the difference or more on the sale of the underlying. Difficult situation to get what you want. Good luck. Regards, Ken

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