Hello ALL, I am newbie to options and I'd like to discuss writing Deep-ITM covered calls. What are advantages and disadvantages of this trading strategy. Let's say, I bought XYZ at 10$ 100 shares and sold against my position deep ITM leap calls of January 2007 at 7.5 strike price and received 3.50 premium, now I paid for my position only 6.5*100 = 650, instead of 1000. So if stock goes up or stays neutral my position in 100$ profit 750-650 = 100. What disadvantage: I had allocated part of my account and don't know when I will be assigned to sell my 100 shares at 7.5 I start losing when stock's price goes below 6.5 price - I can calculate and close my position before as breakeven. My advantage is low risk strategy with almost immediate profit when position got assigned. I have questions: First of all as newbie I don't know how it really works: If I wrote calls at 3.5 for strike 7.5 (actual price of stock was 10 when I wrote these calls), when I will be assigned, do I sell my 100 shares at 7.5 or at 6.5? Whom do I sell my shares to guy who bought from at 7.5 and should wait until price will be above 7.5+3.5=11 or it can be any trader/investor who has options for 7.5(I know it maybe dumb question , but I want to be clear on this one, do exchange keep track who buy/sell and what time/strike price)? If you can recommend any book that covers Deep-ITM covered calls, it would be great, I have no luck to find this one, people explain a lot about writing covered call slightly out of money, but not deep-itm :-( Thank you for any input.