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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who started this subject7/19/2001 10:51:11 PM
From: JGoren  Read Replies (1) of 5205
 
Okay thread "dummies," look at this.

Message 16098006

Would seem to be an important consideration for the many of us who are writing CC's on our qcom shares; something to think about as decisions on August and September approach.

It seems to me that there is a risk, particularly regarding the September and October calls that holders of calls might decide to exercise them even if they are OTM, figuring if Spinco is spun off that the Spinco + Qcom shares prices will make it profitable. Does this make any sense? Or is it just the October calls, which are sold before the end of September, that are at risk?

Do any of you have experience with selling calls into an impending spin off?
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