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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (488)	2/10/1999 6:44:00 PM
From: NateC	Read Replies (4) \| Respond to of 2317

I was reading the excellent info at webbindustries.com techstocks.com hmatos@flinet.com George Van Noy & John W. Quartermen's enhancement of Herman Matos' original work: HOW TO WRITE COVERED CALLS - A REAL CASE STUDY NET COST BASIS SPREADSHEET RECORD KEEPING This is a good piece....and has some XLS spreadsheets to track CC's. in any event.....he says, "I was once 8 points in the money and my calls were never called out. You see, people that purchase calls may not have the actual money in their accounts to pay for the stock at the strike price. Therefor, they just sell the calls back to the open market. That is Really Nice!! I get to keep a big premium and the stock..." Now..my question is this...I'm currently with AmeriTrade.. They have a policy of exercising every option that is 3/4 point ITM at expiry. SO....there are no windfalls as mentioned above. Should AmeriTrade be allowed to do that? Does Dreyfus, and some of your other option brokers do that? It sounds like they get the "spread", if the writer doesn't decide to exercise and put the stock to me. ??