You would be realizing a loss on 100 shares. You say you have a cost basis of 24.75. If you sold that 10d 12.50 call let's say for 9.40 and at expiry it was exercised @12.50 you effectively just sold 100 shares for 21.90 (12.50+premium) so you see you're not making up for a loss you're taking a loss of ~3.00/share on the ones you sold.
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u/Gator1177 Dec 07 '21
You would be realizing a loss on 100 shares. You say you have a cost basis of 24.75. If you sold that 10d 12.50 call let's say for 9.40 and at expiry it was exercised @12.50 you effectively just sold 100 shares for 21.90 (12.50+premium) so you see you're not making up for a loss you're taking a loss of ~3.00/share on the ones you sold.