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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: Lost in New York who wrote (8522)	9/11/1998 10:41:00 AM
From: AurumRabosa	Respond to of 14162

I've had my stock called away when it made no sense from an options perspective. You're especially susceptible to being called early if there's any takeover activity in the underlying. It's a quick and easy way to rake in a few shares for arbs and the acquiring firm. Anytime you write covered calls you must be prepared to sell your underlying shares. I'm planning to write some covered calls on INTC. Considering Jan 85s for $11 which corresponds to a pop to $88, or, maybe I should hold out for $13.5 on a pop to about $92. Any opinions?