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Thanks for the note on the opening print. I should probably ask my brokerage about it. The dollars are small but something just doesn't look right here. One also wonders if my order was queued up and with a market maker at the instant the market opened. Maybe my brokerage sent my order a...

Thanks for the reply. I was happy to get $10.00 but just wanted to understand how these things work for future reference. This was only an experiment investing in a Closed End Bond fund for the first time. I held it since 2008. The fact that the security opened at $10.27 seems the key...

I had a Good Until Canceled Limit order pending for several weeks at my brokerage. The security was a Closed End Municipal Bond fund with an average daily volume of 50,000 shares. The GTC order was to sell 400 shares at $10.00 or higher. The security closed the previous day at $9.97 and...

Thanks Mark. I think you may have misunderstood my point. I was just stating than an ITM Call Holder at expiration better not be asleep at the wheel, incapacitated, or unable to contact their broker if they don't want to own the underlying stock and automatic exercise comes into play...

Mark - Thanks once again for your help. The Automatic Exercise now makes a lot of sense and I assume one has three days to settle the purchase. Hopefully the Call buyer was not asleep at the wheel and actually wanted to own the underlying stock. Regarding doing an Exercise online, I don't...

Thanks Heech, Dagnyt, and SpinDr0 for your help. It is much appreciated. Shorting the stock to lock in the gain is a neat concept. I assume I'd need a margin account to do that which should not be a problem. Thanks for all the other scenarios and considerations. Looks like I need to...

I'd like to understand how to exercise an In-The-Money Call at third Friday expiration and immediately sell the stock. I realize that many traders would simply sell the call at a profit, but are there cases where it is better to exercise and sell? Does one need to call their broker before...

Yahoo Finance shows a volume of 6 calls last Friday for the April 35 2010 Calls. Last trade was $1.00. My spreadsheet shows the cash flow or return for the unexercised and exercised cases. I believe the dividend is now $0.3675. I show cash flow including dividends of 5.12% if not...

Do these traders want to own the stock which is currently trading above strike, or sell it immediately to capture a gain? If they want to sell it immediately, when exactly would they do that? The following trading day at the open? That seems too risky. I think I read that most options...

Mark, Thanks for the help. I have been selling covered calls successfully so am not a total newcomer. Currently I am long 400 shares of JNJ purchased around $56, Short 4 October 60 Calls for which I received $1.25. With Johnson & Johnson currently under $61.25 ($60.94), I am happy and...

Here is a related question. Assume one is long a stock and they sold a covered call. The call is in-the-money. What is the situation if they decide to repurchase the call during the trading day tomorrow which is the last day before expiration? Is there any chance of buying back the call...

Is this correct? Did you mean 90? If you sell a covered call at a strike price of 100, and the stock rises to 110, isn't the option buyer ten dollars in the money? He would exercise if still in the money at expiration.

Thanks to all for the help. I have sold covered calls in the past but that was many years ago. My intent today would be to bring in extra income from the call proceeds, but only if a stock made a significant move up and I felt that a decline was likely. I hold a number of stocks that I...

Are In the Money Call Options only exercised at expiration? I just wondered if there are any cases where one could get exercised early. Thanks, Kent