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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Roman S. who wrote (11247)	7/20/1999 10:04:00 PM
From: Tom K.	Respond to of 14162

Is there a way to find out whether calls purchased were done naked or covered? No way that I know of.... maybe someone else... but, why bother... focus on your side of the trade.... the person that is naked focused on their trade. Tom

To: Roman S. who wrote (11247)	7/21/1999 11:27:00 AM
From: Ira Player	Read Replies (1) \| Respond to of 14162

Options don't work that way. When you buy or sell an option, all of the open interest is treated as a pool of open interest. There is no 1 to 1 relationship between buyer and seller. If an option is bought and immediately exercised, the person on the other side, the writer, is not necessarily the person whose stock is called. A clearing house is selected "randomly" from the pool (of all clearing houses with open interest in that option). Selection among individual writers within the clearing house is not necessarily random. Even it you are the only one holding open interest, there may be multiple clearinghouses and writers involved. Ira