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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: Scott who wrote (8218)8/14/1998 10:20:00 PM
From: David L. Hoevener  Respond to of 14162
 
There is a commission charge to sell the stock when it is called away by the ITM call. The commission is always higher than the simple buy or sell commission. Ask your broker about this commission cost and make sure that it does not exceed your excess premium before using this strategy. In your particular case, you will still have a profit even if you only did a one hundred share trade.