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bowman

Member since: Jun 08
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Posted May 19, 2009 (12:38AM)
I have been selling covered call on stocks and now I would like to sell calls on ETF's. Is there any info on this anyone could share? What I am wondering about is how they are settled, say for example I buy 100 shares of XYZ- ETF and sell a call on it and at expiration it is called out or assigned. Is it settled with cash? I bring this up because a article I read not long ago stated that they are settled differently. Any help would be appreciated.
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OldFart

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Posted May 19, 2009 (01:14AM)
I am sure there are exceptions but most of the large and liquid ETFs - DIA, IWM, SPY are settled with shares. Indexes and some FX options are cash settled
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BobJohnson

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Posted July 02, 2009 (05:13AM)
Several calls I wrote on ETFs went ITM, and all were settled in SHARES not cash... so you'll see negative shares in your account. At least that's what happened in my case with IWM.