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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (977)	10/17/1999 11:55:00 AM
From: Jon Tara	Read Replies (1) \| Respond to of 2317

Can you give an example? I'm not exactly sure what you mean by this: "I personally like to have the credit received be much larger that the combined bid/ask of both sides."

To: jjs_ynot who wrote (977)	10/17/1999 3:24:00 PM
From: NateC	Read Replies (2) \| Respond to of 2317

I'm hoping someone on this thread is a Long call, short term Covered Call (calendar spread) investor...or at least can help me understand what happens if exercised in this situation I'm long 20 contracts of the March 50 call for underlying CTS...currently trading at 56. If I should sell the November 60 call...collect the premium,etc......and then get exercised......what actually happens at expiry? Let's say CTS advances to 62 on November expiry day. Obviously the broker needs 2000 shares to sell to the guy who bought my covered Nov 60 call. Since this is a spread for me..20 contracts long March 50, and 20 contracts short Nov 60......My 20 long contracts are used for this purpose, right?? question #1. Does the broker automatically exercise my long call (March 50) for me?....and If so.....is that position "wiped out", and I get $00.00. Or does the broker have to buy the long call from me, in order to exercise it. (In the latter case....stock at 62, March 50 call might be worth about $14 or so) In other words..do I LOSE the long call altogether,....or just sell it at market, to the broker.....when he automatically exercises me?