What Happens When My Covered Call Is Assigned?
Summary of User Inquiry and Solutions:
- Main Problem: The user, Elwrey, is seeking clarification on whether their shares will sell automatically if their covered call is assigned.
- Solution: Fidelity confirms that if the covered call is assigned, the shares will be sold automatically.
- Additional Resources: Fidelity provides links to a video on selling covered calls and a FAQ section for further learning.
Here’s the full thread
If my covered call is assigned, will my shares sell automatically or is there something I need to do on my end?
Great question, @Elwrey.
If your covered call is assigned, Fidelity will automatically sell your shares. If needed, the links below will help you learn more about selling covered calls.
Selling Covered Calls (video): https://www.fidelity.com/learning-center/investment-products/options/selling-covered-calls-video
Options Trading FAQs: https://www.fidelity.com/options-trading/faqs
If any new questions pop up after reviewing these links, let us know. We’re here to help!
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read the Characteristics and Risks of Standardized Options (https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document). Supporting documentation for any claims, if applicable, will be furnished upon request.
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