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Tag Archives: american style option
covered call writing and dividends

Early Exercise Due to Dividend Capture: Theoretical and Practical Applications

When we write a covered call option we are obligated to sell our shares at any time from the option sale to contract expiration if the option buyer decides to […]

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early exercise of stocks options

Reasons for Early Exercise

Our covered call writing and put-selling options can be exercised at any time from the moment we sell these options until 4 PM ET on expiration Friday. This is the […]

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options on an index and on an exchange-traded fund

Index Options And Exchange-Traded Funds Options: A Comparison

Writers of covered calls and cash-secured puts use stocks or exchange-traded funds as the underlying securities. It is the value of these securities that give value to our option premiums. […]

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covered call writing and early exercise

Early Exercise: I Don’t Want To Sell My AAPL Shares

Covered call writing obligates us to sell our shares to the option buyer at any time up to 4PM ET on expiration Friday should the buyer choose to exercise those options. […]

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Early assignment of options

Early Exercise and Assignment of Options

When we sell a covered call option, we are undertaking an obligation for which we are well paid. Should the option holder decide to exercise that option, we must sell […]

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