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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Thomas Tam who wrote (1590)	7/23/2001 7:14:49 PM
From: AnnaInVA	Read Replies (1) of 5205

Thomas, you said: <<except the Jan and Feb 50s - if called so be it, and a decent return at that << That means, that your broker will charge you $50 per share OR MORE (depending where the price is above $50 when these options are called) to satisfy the person who bought these calls from you. Purchasing these 2000 shares at $100,000 + might result in a margin call to you, depending on your holdings. And, this scenario might just present itself overnight, it doesn't mean, it can't happen until Jan or Feb of 2002. And why would this represent 'a decent return' - since you are the one who then would have to buy these shares at $50 or more to turn them over to the call buyer ......... anna

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