Say I sell a covered call at 60 strike price and the underlying goes up to 70 and I get assigned however my average stock price is 80.
Am I giving away a 100 stocks worth 70 each even if it costed me 80 each ?
Appreciate any help!
A bit confused about covered calls ?
byu/Watchmedeadlift inoptions
Posted by Watchmedeadlift
1 Comment
If I’m reading your post correctly: You’re not giving away 100 shares at $70, you’re selling the shares at $70 despite your cost average is $80. So you’ve lost $10 a share not factoring in what you received for the covered call.