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

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To: Ken Brown who wrote (8517)9/11/1998 10:19:00 AM
From: Lost in New York  Read Replies (1) of 14162
 
Question: If XYZ goes to 35 (or more), but then *drops* back to 30, do I still own it? IOW, is the determining factor of whether or not the stock is called from me the price on expiration day?

As long as there is time premium left in the option, no one is going to call the stock from you. The would rather sell the options to someone else and not lose the premium.

However, during options expiration week the premium could be so small that you might be called due to arbitrage, although I've never heard of this actually happening to anyone.

Dave
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