Hello. I currently own some shares of stock that I would like to write covered calls on. I just would like to find out what the probabilities are of the call being exercised and me having to deliver the stock? Good? Bad? The stock trades 2-4 million shares a day. Is there anything I can look at to give me some idea of being exercised such as open interest or volume? Thanks for your help.
Thinking about Covered Calls
- Thread starter c_323_h
- Start date
if you are writing you are selling.
Given the type of questions the original poster asked regarding covered calls, I would recommend you do not touch any options until you have invested in a book or two on options and how they work and how a covered call strategy works.
Some books I recommend are by Mark Wolfinger and McMillian's Options as a Strategic Investment which goes into covered calls after covering the basics of options.
I tihnk pouring over two good books on options and covered calls will give you a better framework to understand how to add covered calls to your long stock holdings.
Phil
Some books I recommend are by Mark Wolfinger and McMillian's Options as a Strategic Investment which goes into covered calls after covering the basics of options.
I tihnk pouring over two good books on options and covered calls will give you a better framework to understand how to add covered calls to your long stock holdings.
Phil