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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: R. Gordon who wrote (6298)1/5/1998 3:12:00 PM
From: Greg Higgins  Respond to of 14162
 
R. Gordon writes: If I read this correctly, I don't have to buy the stock outright, ...

If this means something I wrote, you're completely opposite of my understanding of the situation. When you sell an equity covered call and you get assigned, you owe stock. Your broker may not be deducting it from your account that way, but it seems to me that they should be.

When you sell an index covered call, if you get exercised, you owe cash.


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