If you write/sell a covered ring up, does it cost you money to close it?
I understand the writing/selling of a covered give the name earns you some money. When you close that position, you hold to buy to close, right? So does it cost you money to close a written covered call and is this mandatory to close that position?Answers: <<<If you write/sell a covered name, does it cost you money to close it?>>>
If you use a "buy to close" transaction, yes. If you do not use a "buy to close" transaction, no.
<<<I understand the writing/selling of a covered bid earns you some money. When you close that position, you hold to buy to close, right?>>>
No. You can simply leave the nickname alone and either you will be assigned or the pick will expire.
<<<So does it cost you money to close a written covered call>>>
It only costs money if you close it next to a "buy to close" transaction.
<<<and is this mandatory to close that position?>>>
No. If the call is out of the money at expiration it will simply expire. (For excise purposed you count that as a closing transaction at a cost of $0.00.) If you do not close the call until that time expiration and it is in the money, you will be assigned. When you are assigned you will market the stock for the strike price.
To avoid being assigned you own, you may use a "buy to close" transaction to close the call.
1. yes, right
2. yes, if the call for buyer doesnt 't exercise the call selection
3. yes, if the call buyer want to exercise the beckon option, save, you don't have to close the position.
How speedily is indian souk growing?
how fast is indian bazaar growing in computer area, and which field is the safest to invest contained by?Answers: growing pretty fast. At smallest the computer service section. Wipro, Infosys, and Satyam are respectively doing well. The big problem for them is they enjoy more business than they can hire people to service. Should hold such a problem in the U S.
I don't know which area is the safest to invest in.
When will Citigroup's stock recuperate?
Will it be back to the mid 40's anytime soon?Answers: Ha ha.
Sad.... you believe that someone know the answer to this. Think of all the "smart" associates that thought it was a upright buy 4 months ago, a year ago etc.
If you own this stock and didn't have an exit plan (or stop), I guess you'll find out..........
Suggestion: Always own an exit plan prior to buying any equity.
The stock will recover when the company get its subprime mortgage problems behind it and its proceeds start growing again. They have be taking massive asset writedowns and they have be raising equity from outside sources, which is diluting existing shareholders.
Wait until you see one or two camp with no writedowns or other crises. Then, the stock may start recovering.
When will that appear? I suspect that even Citigroup's management doesn't know that. I own not heard anyone at the company promise that the writedowns are markedly over.
Kris, what price you bought... a lot of inhabitants bought citi arond 40 / 35 ..
but i dont think it would turn up above 30 until 2009