Buying the stock against it is a short COVERED call. You are hoping that the stock RISES to the strike price of the option, and it will be called away at a profit. If it does not rise, the option that you sold is worthless, and you sell more new options.Nice income plus. What I did was sell calls, without owning the stock. I do NOT want to own the stock. I do not think that there is fair value at this price. I do not want to tie up the capital. I think that the stock will NOT rise to 500+ by September. So...I sell the calls naked, pocket the premium, and I expect that time and market action will make them worthless. I assume every firm has its own criteria for that level of activity. It has to do with such factors as $$$ on the account, and options experience. Certainly not for the faint of heart. GL Hope this helps.