Why is selling a covered call identical to selling a put?

Discussion in 'Options' started by ghankins, Aug 9, 2005.

  1. If there is any time value remaining in the short Call option, you should welcome early exercise !

    You'll most likely be assigned on a Put position on ex-div day. But as above, if there's any time value remaining look at it as a gift.
     
    #31     Aug 12, 2005
  2. Because you run the risk of the stock getting away from you faster than the put premium compensates you.

    And if a master of the arts such as yourself is going long , the stock will probably double within a week.
     
    #32     Aug 17, 2005