Stock Options: Call Writing Made Easier

As of June 17, the SEC will permit vested stock options to be used as collateral for “covered call” writing. As we discuss in our book on Managing Concentrated Stock Wealth, Aspiriant would occasionally use call writing as a low risk means of managing concentrated stock positions for our senior executive clients. In the past, the option writer either had to post long shares or other assets as collateral. This relaxation of former restrictions will make covered call writing easier and more accessible for holders of even modest stock option positions.