|Forum - Writing Options
||For those interested in writing calls, puts, and spreads|
|From: Bender24 (Rep: 136) reply to Stocktrader86||Date: 11/26/2012 19:03|
|Forum: Writing Options - Msg #717||Thread #673478414 (Rec: 0) |
|Re: Covered Call Exercise Question|
When you sell your 7 covered calls the money you receive is that premium, so you get that up front as a capital gain, unless you decide to buy to cover and then that difference is either a gain or loss.
Edit: Also if the stock price is higher than the strike price at expiration that's when they are taken away, however I've had mine taken away the day before a dividend date,so that happens too!
Sent from my IPad
Share This Post:
Curious about writing options? Come join me...
| Reply to Stocktrader86 - Msg #716 - 11/26/2012 13:10|
Covered Call Exercise Question
Okay - so lets say I own exelon stock 700 shares and want to do a covered call at 31 or 30... and I sell 7 calls at 30 or 31 strike...
If the stock crosses 30 do I get settled and lose my shares and collect the premium then or does that ONLY happen at expiry?
|NOTE: This message has been revised 1 time. Read original version of this message.|
TheLion.com | About Us | Agreement & Disclaimer | Privacy | Twitter
© 1999- TheLion.com, Inc.