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

To: BDR who wrote (812)	5/26/2001 7:43:10 PM
From: JohnM	Read Replies (2) \| Respond to of 5205

Count on it. Expect it. It will happen. Between the brokerage firms and the option exchanges they have systems in place that make exercise of in the money calls virtually automatic. You will in all probability get called out if NUFO is anywhere above 15, although transaction costs, low that they may be for insiders, may prevent exercise at 15.05 or even 15.10. Dale, thanks. My understanding now is that this is only likely to happen at the point of expiration. Before that time point, the stock price would need to be well above (say, 2 or 3 points) the strike price before someone would call. Sound right? Or should I always assume that the moment the price moves above the strike price, or close to it, I should be concerned about being called out. I ask this because I'm considering writing calls against shares I hold and want to be as clear as possible about the process before I do so. John