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Forum - Writing Options    For those interested in writing calls, puts, and spreads

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From: Bender24 (Rep: 121) 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!

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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.
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