Selling In the Money Covered Calls

[gkishot]

even better

 

[dagnyt]

Quote from forex-forex:

ZERO

ZERO

ZERO

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forex-forex
Trading guru since 1974

Hey guru.

According to you every option that is currently OTM will remain OTM.

Very comforting for premium sellers.

Mark

 

[forex-forex]

Quote from dagnyt:

Hey guru.

According to you every option that is currently OTM will remain OTM.

Very comforting for premium sellers.

Mark

No I'm not saying that. I'm saying that OTM options have a zero chance of assignment. Lets not twist my words around.


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forex-forex
Trading guru since 1974
Highly respected ET member since 2006
Bankrupt since 2008
Homeless since 2009 ?????

 

[dagnyt]

Quote from forex-forex:

No I'm not saying that. I'm saying that OTM options have a zero chance of assignment. Lets not twist my words around. :

OK. To what does 'zero' refer?

Mark

 

[nickdes]

OK. To what does 'zero' refer?

Mark

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It appears to me that he is saying correctly that if an option is OTM and stays OTM at expiration, then it has a zero chance of being assigned.

 

[Allspread]

Quote from forex-forex:

ZERO

ZERO

ZERO

ZERO

ZERO

ZERO




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forex-forex
Trading guru since 1974

I'll sell a covered call at a 100 strike and when the price moves to 110, I'm a genius, because no one will exercise a 100 call option with the price at 110. :dumbass-icon

How'd that 38 OCT QQQQ call buy work out? Last I checked, you'd lost 96% on that trade. Did you make it all the way to a 100% loss?

 

[forex-forex]

Quote from Allspread:

I'll sell a covered call at a 100 strike and when the price moves to 110, I'm a genius, because no one will exercise a 100 call option with the price at 110. :dumbass-icon

We are talking about OTM options, your example is using ITM options. Lets stay on topic.


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forex-forex
Legendary trader
ET gold member

 

[IV_Trader]

Quote from forex-forex:

No I'm not saying that. I'm saying that OTM options have a zero chance of assignment. Lets not twist my words around.


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forex-forex
Trading guru since 1974
Highly respected ET member since 2006
Bankrupt since 2008
Homeless since 2009 ?????

a comeback kid at 2010 ?

 

[gkishot]

Quote from forex-forex:

We are talking about OTM options, your example is using ITM options. Lets stay on topic.


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forex-forex
Legendary trader
ET gold member

They were OTM calls at the time they were sold. How is it off topic?

 

[KAWill70]

Quote from Allspread:

I'll sell a covered call at a 100 strike and when the price moves to 110, I'm a genius, because no one will exercise a 100 call option with the price at 110.

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.