Besides the theory of the covered call, how does it actually work with the broker?
Senario, suppose I own 100 shares of the stock, now I am going to sell 1 call option on the stock for the purpose of doing a covered call.
If the broker does not know or see that I already own the stock, they will require some cash margin. Do I have to contact broker and tell them that I already own the stock and the call purpose is to create a covered call? Or do they look and figure this out themself?
And what happens if the call is assigned? Does the broker automatically sell the stock, or do they contact me, or do they pull money from the account without seeing that the stock is there?