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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: jaytee who wrote (13146)	8/14/2000 9:37:05 PM
From: robwin	Respond to of 14162

Well I am actually thinking of excercising some calls to own a stock...that's a first for me... If one does nothing on the date of expiry of his stock options and they finish "in the money", are they automatically exercised for you? Or do you have to do something? I imagine the commission charged for exercising 10 calls or 1000 shares of a stock at $50.00 would be substantially higher than simply selling the option.

To: jaytee who wrote (13146)	8/15/2000 12:18:17 AM
From: Tom K.	Read Replies (1) \| Respond to of 14162

Jaytee, re:collateral power That's right, I don't risk her GE shares. Actually I do mostly naked PUTs against the collateral because I find it safer. Occasionally I'll buy a stock and do an ITM CALL just to get premiums and be out the next month. If you're cautious and not greedy, it works quite well. The biggest problem I have is my mother now had to pay income taxes on the gains which was a surprise to her. Now she pays quarterly from the premiums I send. Tell your in-laws to keep some money aside. Good luck. Tom