re: Anyone do covered calls?

Lets say the long call date is June 2023 and the short call gets called today. You would exercise the long call today by purchasing 100 shares at your long call strike price?

I'm trying to visualize how this would play out in my Schwab account and budget how much $ I need on hand. Is it fair to say you should always have at least enough cash readily available to "exercise" your long call which is escentially purchasing 100 shares at the long call strike price?

quote:

---

Is it fair to say you should always have at least enough cash readily available to "exercise" your long call which is escentially purchasing 100 shares at the long call strike price?

---

No. You don't need cash available to exercise your long call.

If you don't take action on or before expiration day, your broker will take your long call to satisfy the short call that got exercised. You do nothing. The math works itself out,

quote:

---

My AMD 7/29 $80 call I sold is in money now

---

I would "roll up". But here are your choices.

If you don't want to lose your shares you can either let it go and hope it closes below 80 at July 29 expiration or you can "roll up".

If it does close above 80 at expiration you will lose your shares but you will have made good money in the process. So there is that.

Here is the "roll up".

BTC "buy to close" your Jul 29 80 call for $4.00.

Go further out and now STO "sell to open" the Aug 19 85 call for $4.10.

So here is the math. You got/had a credit for $266. You bought back your sold call, a $400 debit. You sold again, further out, for $410 credit. +266-400+410 = 276

So this gets you back to a $276 credit.

1. You have kept your shares.
2. You still have a credit of around $276 now.
3. You have increased your strike to 85.

Hope this makes some sense.