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.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Ben Antanaitis who wrote (56059)	5/25/1998 3:20:00 PM
From: Gary Withers	Respond to of 186894

Re: However, if you are called, you don't necessarily have to give your stock up. You can roll it over to a farther date... Ben is right. Once the assignment happens, it's too late. The stock is gone. Any rolling must be done before the assignment, which potentially can happen at any time up to expiration. You can, however, tell your broker to deliver borrowed shares in the case of early assignment of covered calls, leaving you with a 'short against the box' position. You might do this if you really didn't want to dispose of the shares yet due to a holding period issue. I've never experienced a premature assignment even though I have often had covered call positions deeply in the money. It's probably more common to be assigned early with stocks that pay a significant dividend. Gary