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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: Mark Z who wrote (10791)	5/14/1999 8:29:00 AM
From: Casaubon	Respond to of 14162

Yes, Sorry...I stand corrected. But that might be baby sitting a position (which is certainly the way to maximize profit but necessarily the way to relax).

To: Mark Z who wrote (10791)	5/14/1999 9:13:00 AM
From: BDR	Respond to of 14162

The price disparity that you describe that gives an arbitrageur an incentive to exercise an ITM call early can occur at the time a stock goes ex-dividend. I know from personal experience. I had March calls written on JPM and was going to roll them forward a few days before expiration only to find they had been exercised because of the ex-dividend date (3/18). I read about the tactic a few days later when my copy of McMillan arrived. It's right there on page 20! Talk about learning from a real life experience. Now I am sweating May 85 MMM calls with the ex-dividend date of 5/19.