Sentences with phrase «short call options»

Covered call investors do not short stock, but do short call options.

We may some position changes and also added to our Enhanced Yield positions (dividend stocks versus near - term short call options).

2When the Advisor's estimate of the expected market return / risk profile is strongly unfavorable, the Fund (HSGFX) has the ability to fully hedge its portfolio, potentially raising the strike prices of its index put options to a higher strike than those of short call options that may be used to hedge the portfolio.

Shorting a call option on a stock you own just before its ex-dividend date is a common income - oriented strategy.

Meanwhile, though the Fund is tightly hedged, our long put, short call option combinations are established so that only one strike is in - the - money when they are initiated.

By the way remember that if you are long the underlying asset and short a call option, you are effectively short a synthetic put option struck at the same price as the call option.

For our part, we don't have enough evidence here to remove hedges, but we are open to the possibility that improved market action could provide at least some basis for a modest speculative exposure to market risk (most likely by covering a portion of our short call options, while leaving our defensive puts in place).

As noted above, we do have some flexibility to remove a portion of our short call options in the event that market action improves modestly.

Though we don't see that evidence yet, and continued economic and valuation risks are likely to keep us hedged with put option coverage in any event, it's possible that we could cover a portion of our short call option hedges if we do see some firming of internals.

In the case of a short call option, the seller who is assigned must sell the stock at the exercise price.

The combination of being long the stock and short a call option is called «covered call.»

By doing one of those, you are covered if your short call option is assigned to you.

If you, A) own short call option contracts; B) you receive an exercise notice prior to expiration; or C) let your short call option contracts finish in - the - money, the cost to assign each option is $ 20 per position.

For our part, we don't have enough evidence here to remove hedges, but we are open to the possibility that improved market action could provide at least some basis for a modest speculative exposure to market risk (most likely by covering a portion of our short call options, while leaving our defensive puts in place).