Saturday, January 9, 2010

[ConservativeOptionStrategies] Re: What is an "unwind"

 

With respect to covered calls, an "unwind" is usually BTC or "buy-to-close" a short call option position - and the subsequent STC or "sell-to-close" of the long stock position.

Most brokers require you to buy back the short call option before they will allow you to sell the stock position. Therefore, to "unwind" a CC position is to close it out.

G

--- In ConservativeOptionStrategies@yahoogroups.com, Vandollar <mercdesdrvr@...> wrote:
>
> Thx eom
>

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