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To: rll who wrote (6634)8/15/1999 10:38:00 PM
From: orkrious  Read Replies (2) | Respond to of 60323
 
Another risk with selling covered calls far in advance, is if the stock tanks, then you are stuck holding it until expiration

Why not just buy them back?

jay



To: rll who wrote (6634)8/16/1999 6:33:00 PM
From: Art Bechhoefer  Read Replies (1) | Respond to of 60323
 
There's nothing to force the call writer to maintain the position until expiration. If the stock falls early on, well in advance of expiration, the call writer can simply close the position, freeing up the shares used to cover the sale. With a volatile stock, it is often better to take the money and run when selling coverd calls.