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Commodity Trading Discussion Forum

covered call writing question

Posted By: debbie
Date: Monday, 2 November 2009, at 12:09 p.m.

If I understand this correctly, when a covered call is written in stock market and the value of the underline stock reaches the strike price of the call option, the writer is out the options sold and the stocks. How does this scenario work in the futures market? Do you have to buy back the call option you sold to exit the positions? I would appreciate your help in this. Thanks. Deb

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