I was surprised to see that my in-the-money covered calls on FXA were exercised this week, prior to their expiration date this month. They were only slightly in-the-money, so whoever had their brokerage assign them must have been desperate for a tiny gain and unwilling to roll their hedge forward.
I repurchased the exact number of FXA shares that had been sold away, and renewed the covered calls on those shares for another month. I remain committed to the Australian dollar as a hedge against US hyperinflation and I don't mind the tiny transaction cost of this wash sale. The cash I've received from FXA's dividends and covered call premiums more than cover these rare costs. This is just one of those things that happens to investors like me who use options in a hedging strategy.
I repurchased the exact number of FXA shares that had been sold away, and renewed the covered calls on those shares for another month. I remain committed to the Australian dollar as a hedge against US hyperinflation and I don't mind the tiny transaction cost of this wash sale. The cash I've received from FXA's dividends and covered call premiums more than cover these rare costs. This is just one of those things that happens to investors like me who use options in a hedging strategy.
