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Author: mjs111 Big red star, 1000 posts Feste Award Nominee! Old School Fool Coverage Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 62  
Subject: Re: How does my covered call work? Date: 4/12/2009 1:34 PM
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They should get automatically exercised tomorrow on Saturday and the stock will be sold out of your account.

In order to stop this you could buy back the calls you sold ("buy to close"). Since the options are now in the money they will be more expensive than when you sold them, but that is how you'd prevent your stock from being called away. Even though this would cost you, it still might be a good way to go if the stock has large capital gains that you would owe lots of taxes on if you sold.

If the option is worth money why would the option owner not want to exercise and just let it expire? Regardless, the Options Clearing Corporation automatically exercises any options that are one cent or more in the money at expiration.

Mike
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