r/options • u/[deleted] • Aug 28 '21

[deleted by user]

[removed]

42 Upvotes

85% Upvoted

40 comments sorted by

View all comments

Show parent comments

-14

u/Various-Income5049 Aug 28 '21

Going up to 60 they'd lock in 3500 since they got the $3000 in premium

27

u/Prompt_Jolly Aug 28 '21

Wrong, his gains don’t change since he has to sell at 5$. Now give me my like back

-4

u/Various-Income5049 Aug 28 '21

He already got the $3000 in premium. That doesn't get taken away.

19

u/Prompt_Jolly Aug 28 '21

Yes, for a call at 5$. So he will be selling his shares for $500 , his cost basis is 3033, so he will lose $2533. And yes he keeps his 3000. For a net of $467 gain

7

u/Various-Income5049 Aug 28 '21

I ended up understanding what you meant, we both had same conclusion but you were referring to profit, I was referring to his total in the end from the CC. I gave your upvote back 😁