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

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To: Sr K who wrote (13518)1/27/2001 11:00:36 PM
From: Victoria Walley  Read Replies (1) of 14162
 
Also, one time I exercised long calls 50 cents out of the money on expiration day

I'm missing something here... why would someone exercise a call that expired out of the money when they could have purchased the underlying for a lower price?

Index options are a very different animal, aren't they? I've no experience with them yet.

Put buyers are much more likely to exercise early, at just the worst possible time if you are the seller!

Often the option premiums contract early the week following expiration Yes, I will often close out CC positions once they are front month but prior to expiration just so I can go out to the next month and get the extra premium. It's often just not worth it waiting for that last dollar of time to decay.

Thanks for posting your experiences!

Vicki
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