I am wondering, if I have a LEAP with covered calls sold on that position. And those calls get exercised, my understanding is, I have to exercise the leap and sell the person the stocks at the agreed strike price.
My question is, do I need to exercise my leaps and buy the stock, then sell the stock in a separate transaction. Or does this kind of all happen behind the scenes at the brokerage and I just end up losing my leaps and collecting the difference in price from the strike.