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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: Boon who wrote (11811)	11/14/1999 4:08:00 AM
From: Jon Tara	Respond to of 14162

They are unlikely to be exercised until they near expiration or until they are significantly in-the-money. If they start to trade at a discount to intrinsic value, then you run SOME risk of early exercise. I can tell you that I will always exercise a long contract that I hold and then immediately sell the stock if I want to close my position there is even a 1/8 discount. But I think that most long option holders don't think to do this, so you are probably safe until very near expiration. (Like the last week.)