akroma Posted January 22, 2022 Posted January 22, 2022 Hi All, I have been looking into and placing some poor man's covered calls and would like to know your opinions on potential strategies as well as the general idea of trading poor man's covered calls. What are the advantages, what are the disadvantages and pitfalls and are they a viable long term way of trading? Regards, Akroma Quote
Kim Posted January 23, 2022 Posted January 23, 2022 https://steadyoptions.com/forums/forum/topic/6834-welcome-to-simple-spreads/ Quote
akroma Posted January 27, 2022 Author Posted January 27, 2022 So I currently have a long call with a strike of 25 in FL. I wrote a call against it with a 44 strike which expires tomorrow. It looks like this will get exercised. I have no current cash position in my account. What would happen tomorrow if I do not have enough margin to be short 100 shares of FL due to the exercise of the 44 call? I do have the long call which could cover it, but would that help since I don't have the money in the account to exercise my long call? Quote
Kim Posted January 27, 2022 Posted January 27, 2022 I believe they will exercise your long calls automatically, but it's worth to ask the broker. Quote
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