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


To: Mike Buckley who wrote (2806)10/20/2001 11:06:31 AM
From: JGoren  Read Replies (1) | Respond to of 5205
 
the risk of getting called even when closing price is below the strike price is where there is news AH or someone thinks he knows the price will go up on Monday. Traders with small transaction costs can screw you for a quarter point. E.g., price closes at 49.875 on strike of 50, but after hours lawsuit victory announced; you could get taken out at 50 and the holder of the option sells the underlying stock on Monday at 51.