Accounting for covered call

Discussion in 'Options' started by smooey, Feb 8, 2006.

  1. hopback

    hopback

    Margin wise, the market value of the stock is pegged to the strike so you can't gain excess equity beyond that point.
     
    #11     Feb 10, 2006
  2. That's a good point and thank you for adding that. I was going to add that but I didn't want to elaborate too much as far as margin calculations go. Surprisingly, a lot of investors fail to understand that part of their free cash calculations.
     
    #12     Feb 10, 2006