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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: JGoren who wrote (13513)	1/25/2001 9:59:56 AM
From: JungleCat	Respond to of 14162

JG, thanks for your input. I have certainly learnt a lot from the thread here about call writing. Hopefully, I can now use some of the ideas to make some wise decisions. Thanks again all.

To: JGoren who wrote (13513)	1/25/2001 4:51:17 PM
From: Victoria Walley	Read Replies (1) \| Respond to of 14162

Generally, all calls where the closing price on Friday is at or above the strike price are called by general convention; those below are not--even if the broker is given no instructions. However, one has to look at the individual brokerage account agreement, for they may require an instruction regardless of the "convention" between brokers. If I were a call buyer and held calls that were ATM or just slightly ITM at expiration, I would be sure to check with my broker just what their cutoff is for automatic exercise without instruction from me. It hasn't happened to me in a while, but the last time I checked with my broker they said the call had to be 3/8 or more ITM for them to automatically exercise, otherwise they don't unless I instruct them to do so. I'm sure that varies from broker to broker as well.