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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Id who wrote (38)	4/19/2001 3:11:56 PM
From: FaultLine	Read Replies (1) \| Respond to of 5205

The other problem I'm facing is having sold May NTAP 15's for 3.50. If I want to find a way to hold onto NTAP, do I: Buy them back at a BIG LOSS (6.80) Buy back half and wait to see what happens in the next 3 or 4 weeks (insuring that I keep half of my position) or... Wait and see. You've raised a point that I'd like to know more about. McMillian says that whenever the premium is within 1/8 of a point from parity you must be prepared for an early exercise. The specialists have such a low overhead that they will take your stock and squeeze a return out of this 1/8 point. Is McMillian's caution true? Have others here actually seen this happen? If this is the case, then it certainly must influence the choices you now face. --dfl