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

To: NateC who wrote (984)10/17/1999 3:38:00 PM
From: OX  Respond to of 2317
 
both sides of the spread are treated separately.
your broker won't exercise your unexpiring ITM long call to cover your assigned short call.
they are 2 separate transactions.
At least if you know you will be assigned at expiration, you can exercise your long if you want to and have the settlements match up.
If for some reason you get assigned early... well, you'll be one** day late in exercising your long call to match up w/ settlement.

[edit]
**assuming you receive notice of being assigned the day following someone's exercise



To: NateC who wrote (984)10/17/1999 4:48:00 PM
From: jjs_ynot  Respond to of 2317
 
Nate,

You will be short the stock, CTS, up to the amount exercised in your short call position.

You can either buy back the stock and write Dec. calls or stay short if you want. The exercise of the short position does not effect the exercise of the long position.

Dave


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