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Re: revlis post# 222484

Thursday, 06/12/2008 11:08:40 AM

Thursday, June 12, 2008 11:08:40 AM

Post# of 432796
IMO : Call seller has a lot of way to minimize risk and keep adding small profit over time decay. They normally hold it until the last day to see how the stock is.
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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