Thursday, June 12, 2008 11:08:40 AM
1. They could close out position by buying back the contract (win or lose against their original premium they got when initiated position)
2. Create rolling order to close out June position and open July position to get more premium.
Basicly no stock transfer. A lot of option trader buy/see contract and close out position when become in money or let it expire when out of money.
The only way the Naked caller lose (BIG) is when stock move up so quick and they could not react to close out position fast enough.
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