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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: Patrice Gigahurtz who wrote (5977)	11/26/1997 11:02:00 AM
From: sergio	Read Replies (1) \| Respond to of 14162

Patrice...You haven't read the booklet by OIC that details all this? You should read it before starting trading options. Luckily your experience were not bad otherwise you would be complaining more. <g> Yes there is a clearing house both at the exchange and then at your brokerage's clearing firm. Supposedly excercise is random if orders are not balance just what you just experienced (23%). Sergio

To: Patrice Gigahurtz who wrote (5977)	12/2/1997 11:16:00 PM
From: Scott B.	Respond to of 14162

Patrice, I understand that it is totally random. Your stock is not put in a line or any understandable order. Your stock is put into a computer and randomly matched. If your stock is in the money, chances are your stock will be called out. Sometimes, as you have found, only some of your shares are called away. This leaves you with an opportunity to write calls for the next month on your remaining shares. Only 15-20% of options are ever exercised in the US. Call the Chicago Board Of Options 1-800-options for more info on writing covered calls. They have a brochure and a video tape on writng covered calls. In addition they have interaactive software (29.95) called tool box for practicing this strategy. You can track your progress on line with the CBOE. I have not tried this yet, but intend to call for this software. Also, ask for the claender of expiration dates for 1998. Received this packet in the mail today. Hope this helps.