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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Pete who wrote (7537)	5/29/1998 1:58:00 PM
From: Zach E.	Read Replies (1) of 14162

If a stock I have written CC's against reaches/exceeds the strike price, or if I write an "in the money" CC, can the stock be called out at anytime up to the expiration date? Yes. If so, what are the chances of being called out before the expiration date? As long as there is time premium left in the option (i.e., the option is trading above its intrinsic value), the chances of it being exercised are small. Occasionally, once an option gets deep in the money, as expiration approaches, it will actually trade slightly below intrinsic value, and the option is likely to be called by a market maker or arbitrageur, who then has a small guaranteed profit by shorting the stock and then exercising the call to cover the short. Good luck, Zach

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next