ES Covered Call Question

Discussion in 'Options' started by asdfghj7, Apr 13, 2009.

  1. I recently went long two contracts of June E-Mini S&P at 750. On the same day, I sold two 800 calls. I have yet to get out of the position. The market is currently around 850 and the 80calls I
    sold are trading around 55 points. They expire this Friday. Assuming the market trades higher than 800 from now until Friday, will my account positions show 2 long june contracts at 750 and 2 short june contracts at 800? What are my options from now to then, or better yet, how would you play this type of scenario based on the above scenario being true? I want to learn
    what I can for next time. I greatly appreciate in thoughts of wisdom.
  2. I would let the calls expire, take the assignment and end up flat. On Saturday, you will be assigned two short positions in the June ES from a price of 800. This will match against your two long June ES positions from 750.

    You could roll out of the two short april 800 calls, but that seems to be a waste.
  3. i would just pay a little premium and close out the position you want to exit on the last day before expiration.