Covered Calls/SSF

Discussion in 'Options' started by ChrisM, Feb 2, 2004.

  1. ChrisM


    I read some time ago in "Futures" that SSFs were approved by SEC as substitute of securities for option short selling.

    I just have learned that it was not true. Anybody knows some more about this ?
  2. A SSF is essentially a stock position (delta =1) and is nothing related to an option.
  3. If it's in security account, a long SSF may be used for covered call option, but if it's in commodity account, then it won't. At least this is how IB handles it.

  4. ChrisM

    ChrisM, thank you for clearing this up. Now all this makes sense.

    However through this experience I realized that deep ITM calls might be good way to build the same position instead of using SSFs, obviously as long as their liquidity is sufficient.