Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mike Buckley who wrote (2813)	10/21/2001 1:34:39 AM
From: BDR	Read Replies (2) \| Respond to of 5205

<<Is there a standard contract and has anyone ever read the terms of the contract?>> My interpretation is that you have a contract with your broker represented by your option agreement and your broker, a Member of the OCC, has an agreement with the OCC represented by the rules of the OCC, viz: theocc.com The OCC enforces the rules with regards to your broker and your broker enforces its agreement with you. The OCC "clears" the transactions between the two brokerages without either party ever directly dealing with the other, hence the name Options Clearing Corporation. I don't believe there ever actually exists a contract between the option writer and the buyer. Someone please correct me if I am wrong. A complete list of OCC rules for its members: theocc.com The rules that apply to us peons are part of the Options Agreement that we sign (and should have read). The agreement usually says that we affirm that we have read the OCC pamphlet "Characteristics and Risks of Standardized Options".