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Yes, it is possible for a covered call to be exercised before its expiration date if the option holder decides to exercise early.

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6mo ago

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Related Questions

When can an option be exercised?

An option can be exercised at any time before its expiration date.


How does a European option differ from an American option?

A European option can only be exercised at the expiration date, while an American option can be exercised at any time before the expiration date.


When are European options can be exercised?

European options can only be exercised at their expiration date, unlike American options, which can be exercised at any time before expiration. This characteristic means that the holder of a European option must wait until the specified expiration date to exercise their right to buy or sell the underlying asset at the agreed-upon strike price. As a result, the pricing and valuation of European options often involve different strategies compared to their American counterparts.


What are the key differences between a European option and an American option?

The main difference between a European option and an American option is the exercise or strike price. In a European option, the option can only be exercised at the expiration date, while in an American option, the option can be exercised at any time before the expiration date.


How soon can options be executed?

Standardized exchange traded options can be exercised at anytime before expiration. Stock options granted by your company depends on the vesting period that is in the terms and conditions.


What are the characteristics and advantages of American style options compared to other types of options?

American style options can be exercised at any time before the expiration date, providing flexibility to the holder. This contrasts with European style options, which can only be exercised at expiration. The advantage of American style options is the ability to capture profits or manage risks earlier, potentially leading to higher returns.


What to do when option is in the money?

Options are automatically exercised upon expiration when they are in the money. Also, options that are deep in the money runs the risk of early assignment. As such, if you are holding an in the money option that is profitable and you have no intention of holding a position in the underlying asset, you should simply sell the option before expiration or roll it forward to a further expiration month if you wish to continue speculating in that direction.


Is Wesson oil good if it is over the expiration date?

The expiration date is the last date on which the manufacturer is willing to guarantee that it is good. After that date, it may or may not be good (for that matter, it's possible for it to go bad BEFORE the expiration date, though this is not terribly likely).


When is the earliest possible time for me to renew my driver's license?

You can renew your driver's license as early as six months before its expiration date.


How soon before expiration in Ohio can auto license be renewed?

The expiration date is printed on the license When your license expires - it expires . . . period. While it is possible that a judge MAY choose to grant you amnesty, the law is clear.


When a vaccine is used 3 days before its expiration is it still effective?

The expiration date is there so you know an approximate date when it should not be used. Three days before an expiration wouldn't do harm, a day or two after expiration might not do harm either, but avoid using vaccines (or any medications) that are after their expiration date.


How long can you hold a check without cashing it before it expires?

The expiration period for a check varies depending on the bank or financial institution that issued it. Typically, checks are considered valid for six months to a year before they expire. It is advisable to cash or deposit a check as soon as possible to avoid any issues with expiration.