I would like to do the following:
Just before market close on a Monday, buy 100 shares of X and simultaneously sell 1 X call option deep ITM. I have sufficient funds in my account to buy 100 shares of X; no margin is involved.
I have two questions: -
Is this considered a covered call or a naked call? As I understand it, the stock purchase settles T+2, so the stock is not registered in my name until Wednesday.
But what happens if I get assigned on Tuesday? Presumably, since I don't yet own the stock, does this mean the answer to Q1 is that it's a naked call?
Any help or insight would be appreciated.