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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
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To: hpeace who wrote (6048)12/7/1997 6:04:00 PM
From: Matthew B.  Read Replies (1) of 14162
 
<but, on dividend stks the exercise rate is higher. infact when I was cc'ing Nynex to learn how to cc..100% of the time if my cc was in the money..I was exercised on ex-devy date. of course you don't find out til it's too late so you miss the divey.
SO, what I would do is is I had 10,000 shares of Nynx. and I had a call in the money on ex-date..I would buy another 10,000 shares that day to make sure I had my 10k shares at close that day.>

Are you saying that you would buy another 10,000 shares at exercise date to keep 10000 shares (rather than buying back the in-the-money calls)?

Or are you saying that you would buy back another 10,000 shares at dividend date to make sure you got the dividends (in-case the in-the-money calls got exercised)?

I believe Schwab automatically exercises your long calls for you if the stock is $0.75 in the money at expiration date. How far in-the-money can the CC be to still not be exercised at expiration?

Thanks.

Matthew
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