If I own 300 shares of a stock and write 3 covered calls that expire in 6 months, will my brokerage prohibit me from selling any of the shares until the options expire?
That depends on what you are allowed to do in your brokerage account. If you sell a covered call and buy back the stock you have a “naked call,” which is the riskiest investment in the stock market. You can only have a “naked call” open if there are no limits on what you can trade in your account.
Of course, even if you can’t trade “naked calls” you can still exit the position by first buying back the call and then selling the stock.
