Optioned can be exercised at anytime. If they are a penny in the money at expiration, they will be exercised UNLESS the owner tells the broker to not exercise.
What surprises many people, especially w/covered calls, short call options are frequently exercised just before a stock goes ex-dividend. If the dividend exceeds the extrinsic value, there is an arbitrage available.
From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Sam H
Sent: Thursday, April 22, 2010 9:10 PM
To: OptionClub@yahoogroups.com
Subject: [TheOptionClub.com] Covered calls hitting strike price?
When a covered call hits its "strike price", is it automaticaly sold or does the buyer have the option to wait until later or even just before the option expires to buy it?
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