Investing - Theory, News & General • Chances of deep in money covered calls getting exercised

Hello,

I have sold deep in money covered call and trying to figure out if it would get exercised.
Let me give some background in real numbers.

I sold covered call for Meta @330 when the stock was at $300 or so. In couple of days stock made an astronomical move to $470. So, my covered call was in money and risk of getting exercised at any moment because expiry date was like 2 days away.
So, I rolled over my call (@330) to future date which is fast approaching. What has happened is when I rolled the call, it sold deep in money call to buyer who paid $140 per stock. So, my understanding is that they would probably not exercise it if stock goes below $470. (Stock is currently at $487 and if it stays there then this is a moot point)

What is my best option to get out of this fix. Is there any option to keep my stocks without loosing any money? And if stock goes below $470 then will the call get exercised?

And all of this happening on ETrade (If there are any nuances of this brokerage firm)

Thanks

Statistics: Posted by thriftyFaramir — Wed Feb 28, 2024 3:02 am — Replies 0 — Views 32

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