Thu 12/18/2014 18:04 ET
DJIA17778.15432.012.43%SOLAR33.700.621.84%GOLD1198.200.310.31%Shanghai3057.523.360.11%
S&P 5002061.2349.472.40%BANKS24.790.582.32%OIL55.86184.903.31%Nikkei17210.05399.272.32%
NASDAQ4748.40106.362.24%SEMI55.300.971.75%US/EU0.810.280.34%Futures2059.9051.702.51%
Welcome Stranger!  Please sign up or log in to enable additional features.Sign Up | Mail | Log In
Forum - Writing Options    For those interested in writing calls, puts, and spreads

Msg Top | Msg List | < Prev | Next > | Post New | Reply | Privately | Search
  
From: Bender24 (Rep: 124) reply to Stocktrader86Date: 11/26/2012 19:03
Forum: Writing Options - Msg #717Thread #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...

http://www.thelion.com/bin/forum.cgi?tf=writing_options&t=

http://profit.ly/user/Bender24_



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.
What would you like to do? Message: Endorse | Bookmark | Report AbuseUser Bender24: Reward | Watch | Ignore

Msg Top | Msg List | < Prev | Next > | Post New | Reply | Privately | Search
  

TheLion.com | About Us | Agreement & Disclaimer | Privacy | Twitter
© 1999- TheLion.com, Inc.