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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: JGoren who wrote (159)4/23/2001 3:07:33 AM
From: Dr. Id  Read Replies (1) of 5205
 
moreover, the longer the option, there is a greater chance the stock price will temporarily go higher
than the strike price and you could lose your stock even if it closes below the strike price on expiration date.

This seems highly unlikely, since the longer term option will still have time premium built into the stock. Why would anyone call it away early when they could just sell their calls and buy the common stock for less than it would cost to exercise the option early? I think this is much more likely when selling puts (and the buyer of the put exercises early and sells you their stock).

dDI
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