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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Dan Duchardt who wrote (3293)	1/20/2002 6:42:50 PM
From: Gary E	Read Replies (1) of 5205

Dan, This from Allen's question.... I wonder what the requirements are on short side being assigned, especially on calendar spread. Is the broker permitted to allow a same day market buy so that the IRA is not short? Could be sticky if short is significantly in the money. Say, assigned 10 calls at strike 35 and $35,000 comes into account but stock at 40 I am thinking that this acct is protected by owning a LEAP that would have been bot at 30 or even 25.....If that's the case, then the cost to deliver the stk at 35 is covered by the ownership of the lower strike long call....or is the example a short call from the IRA ? ..that's naked, and I dont think that is allowed by any broker.. I am confused here... Hal

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