How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (7392)	5/4/1998 2:57:00 PM
From: VincentTH	Read Replies (1) of 14162

Herm, It depends on the brokerage firm though. At Waterhouse, using WebBroker I would buy the long call first, then sell the short call. However, there is a difference in execution compared to a covered call. The sell of the short call (to establish the spread) has to be approved my a human before it can be delivered to the floor, whereas the CC goes directly to the floor. Depending on the volume of the market, the order goes into the pending state between 1 to 10 minutes, before it can be approved. At Fidelity, a live broker is required to handle spread.

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