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The term “uncovered” simply means you’re selling a call option contract that’s not covered by a position in the underlying security. It’s also known as a “naked” short call option. This strategy is considered very high risk, as you’re theoretically exposed to unlimited losses. That...
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If I sell a covered call in the money and it exercises. Still make money on it from the options premiums, is this taxed as Capitol gains or a capital loss? If it is taxed as a Capitol loss is this a bad thing? Will this afect how much SSC I get when I retire...
If the seller of the call owns the underlying stock, then it is called "writing a covered call." If the seller of the call does NOT own the underlying stock, then it is called "writing a naked call." Obviously, in this instance it is "naked" because the seller does not own the un...
By selling covered calls you are essentially setting a cap on the potential upside of stock in your portfolio over a given time frame and selling the rights to any gains above that level to the call buyer for a guaranteed sum of cash. Things to Remember: The deeper out-of-the-money you...
This is somewhat more likely if there is a pending dividend and the ITM short call has no time premium remaining. The Options Clearing Corporation will automatically exercise any option that is $0.01 or more in-the-money at expiration ("exercise by exception") unless the owner designa...
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option approaches its expiration, the time value decreases since there's less time for an option buyer to earn a profit. An investor would not pay a high premium for an option that's about to expire since there would be little chance of the option being in-the-money or having intrinsic ...
An investor writes a covered call with a strike price of 44 on a stock selling at 40 for a 3 premium. The range of possible payoffs to the writer of this covered call on the combined position is: A-40 to 47. B-37 to 7. C7 to infinity. 相关知识点: 试题来源: ...