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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: EnricoPalazzo who wrote (277)4/26/2001 12:15:29 PM
From: TsioKawe  Read Replies (2) of 5205
 
<<To me, the "worst" possible outcome is when a CC gets called for a huge profit to the buyer. That's a real, permanent loss of capital. >>

If you had time could you explain the process of this process??

IE, are you saying if I sell calls in the money, and the buyer exercises his option to purchase my shares at that price, I dont get to keep the money that was given to the account for the writing of the calls....and If the calls go up in price, do I have to dish out any cash to the buyer??

Account is short 10 May 5s, wrote at 2.15, current bid on May 5s are 2.45, still holding the stock...Do I keep the money on the calls under all circumstances??

Thanks in advance

Tsio
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