SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?


To: Poet who wrote (4496)3/9/2000 2:19:00 PM
From: AMF  Read Replies (3) | Respond to of 8096
 
Poet,
At last someone who explains in terms I can understand!
One thing, though, what is the risk or worst downside to cc?
Again, many thanks! Anna



To: Poet who wrote (4496)3/9/2000 6:40:00 PM
From: ljbein  Respond to of 8096
 
Hi Poet - thanks for such a clear and thorough explanation. I have two questions about covered calls. Why wouldn't you sell a call that was farther out - say July - for the larger premium? Especially if you're trading in and out anyway? Also, is the money you receive for the CC actually credited to your account and marginable right away or does that only happen when the option expires?