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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 (7705)6/19/1998 10:33:00 AM
From: Tony B  Read Replies (1) of 14162
 
Hi Herm,

I am currently "sitting on the bubble" with my CPQ CC's. CPQ is trading right at 27.5 this morning and I am short 5 June 27.5 calls, which I sold at 1 1/2 last week.

I am considering buying back the calls at 1/8 or so, but if I don't what are the chances of my shares getting called if CPQ closes 1/16 or 1/8 above 27.5? Assuming CPQ closes in this range is there also a chance that only some of my shares are called? (I am aware that is all random as to what/whose shares are called)

Thanks in advance for your reply and keep up the good work on this very informative thread.

Good Luck
TB
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