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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Orhan Birol who wrote (12361)	12/25/1997 2:41:00 PM
From: geewiz	Read Replies (1) \| Respond to of 18056

Orhan, Getting called for a call option in the money before expiration is something that I had the fortune not to experience yet. Is it the option of the call buyer to call the shares anytime they are in the money? I trade my covered calls often, selling at the money on a price spike and buying back at 50-70% as soon as possible. Always wondered if I'd get called away on some big merger news sending the price up big time? Thanks in advance! Mohan - have a safe and good vacation and hurry back with your thoughts for us bears! art

To: Orhan Birol who wrote (12361)	12/25/1997 3:53:00 PM
From: Zeev Hed	Respond to of 18056

Orhan, if the expiration date is within few weeks yes, that is why I recommend deep in the money and the July or even the Jan 1999. The idea is to protect against a coming decline, in a good market or a volatile market trending up, in or just out of the money are better play. My recommendation should be taken against the alternative which was shorting against the block. The oveall return is much better, IMHO when selling options against the position (deep in the money) if you are worried about a bear hug. Zeev