The Covered Calls for Dummies Thread Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Covered Calls for Dummies Thread

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: melman1 who wrote (1817)	8/6/2001 6:47:08 PM
From: BDR	Read Replies (1) of 5205

<<...in practice does anyone ever exercise before expiration? >> Seldom unless the time premium is minimal. Usually the person holding the call is better off just selling the call and keeping the time premium than exercising the call. (see p. 19 of McMillan, 1993 edition) If you write calls on dividend paying stocks you can risk being called out on or near the ex-dividend date. (p. 20, ibid.) It happened to me with calls on JPM. I have read the pertinent passage several times. I still don't understand it. That is why I am, still, respectfully yours, dummy DR

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next