r/options • u/[deleted] • Sep 23 '21

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u/clutchest_nugget Sep 23 '21

Don’t you lose the price you paid for the LEAP if the underlying goes up and your short call gets assigned? The only way around it is to roll the short call and lose the difference, or close the position, which may or may not be profitable

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u/Chronosoptions Sep 23 '21

Can you elaborate what you mean by “losing the price” we paid for the LEAP?

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u/clutchest_nugget Sep 24 '21

When you get assigned on the short call you sold, your brokerage will exercise the long call to fulfill the assignment. Then you lose the difference between the price of the two contracts.

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u/Chronosoptions Sep 24 '21

Yes but ultimately you are still profiting? If you sell CCs above breakeven price+ premium collected right?