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

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To: Roman S. who wrote (10807)5/16/1999 8:52:00 AM
From: pride  Read Replies (5) of 14162
 
to all,

i have questions concerning uncovered call writing. what are the risks? say you sell an uncovered call on at&t for jan00-65. if the stock starts to go up and gets near the strike price couldn't you buy the shares then to cover your position? if that's the case i don't see the risk of doing this. i realize that you would have to have the cash on the sidelines to cover you call in the event of the stock price going up but is that it? is there any margin interest charged in doing uncovered calls? please, anyone respond and let me know how this all works concerning uncovered calls.

sincerely,

pride
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