Hello All,
I am new here and hope someone can fill in some the blanks I still have from reading books and researching on Options.
I have a question on Covered Calls and when the stock is assigned. I will use an example to illustrate my question. I believe there are two types, this is for an American Option not a European style.
You sell a covered call with a strike price of $30. The stock price rises and goes above $30. Is the option automatically exercised as soon as it goes over $30? at the end of the trading day if its still over $30 or does it need to go a certain amount over the strike price before they buy the stock from you at the strike price. And does it happen automatically?
Thanks in advance for all you help.
Scott
I am new here and hope someone can fill in some the blanks I still have from reading books and researching on Options.
I have a question on Covered Calls and when the stock is assigned. I will use an example to illustrate my question. I believe there are two types, this is for an American Option not a European style.
You sell a covered call with a strike price of $30. The stock price rises and goes above $30. Is the option automatically exercised as soon as it goes over $30? at the end of the trading day if its still over $30 or does it need to go a certain amount over the strike price before they buy the stock from you at the strike price. And does it happen automatically?
Thanks in advance for all you help.
Scott
