Why would there be any realized capital gain on the stocks if you buy back the option and the stocks are not actually sold/called away? I understand I would have cap gains on the premium if there was any left after the buy back (doubtful). What am I missing here?
What stocks were you selling calls on and how long out? Were you diversified-selling calls on multiple stocks at the same time to try and average out your win/losses? Why did you let the stocks get called away? Was it not worth it to you to buy the option back?
I am looking at selling calls on...
I understand options as they are not that complex. I am talking about the mechanism in how the options are actually written/traded/executed and how the buy back works.
Here is the article < https://pocketsense.com/can-seller-call-option-buy-back-3021.html > that has me wondering how the buy...
Thank you for those links, but unfortunately, they did not answer my question:(
So I found this page ( https://www.schwab.com/active-trader/insights/content/managing-covered-calls which talks about "Close-out: Buy back the covered calls (at a gain or loss) and retain your stock." So they use...
Hello, I am learning about selling covered calls and have some questions about what happens if the buyer of a covered call executes the option. What I am confused about is, buying back the option if it's above the strike price. I've seen that you normally can buy it back, but is that after the...