No. of Recommendations: 2
This is 25-year-old common in a taxable account, getting called isn't an option...
Well, the response from a sensible advisor would be not to write calls against that position. : )
But, if you're going to do it anyway, the best way to avoid an option you've written from being exercised is to make sure that you only every have outstanding short positions in options with a fair bit of time value (at the bid price). No sensible person exercises an option which could get them a lot more money if they sold it instead, so such options almost never get exercised. So, same as previous suggestion: either just close the current position, or replace it by closing it and writing a longer dated one with more time value in it. This will probably raise both your current cash balance and breakeven exit price.
Jim
