I wrote the calls in late Aug. when share price started going down. The Jan $35 call options sold were � $6.20 and I had paid � $39 for the shares. That gave me a cost basis of about $32.85/share. As of Friday the same options went up to $25.30, so I figure if I buy them back now my cost per share will be �$58.15. When I've written calls before I've always closed them out, but I never imagined this stock would make such a run..
Dolce- If you bought the equity at $39 and sold the 35 calls at a premium of $6.20 you positioned yourself to take a $2.20 cent profit per share. 5.5% profit. Buying the option back after the jump in price would be a realized loss. Since the the option will certainly be assigned, it seems to me that you should be ok with a small profit. That's better than a sharp stick in the eye.
Dolce I agreed with Donogold. You will gain a little this way or buy it this year and show a loss if you have substantial gain this year to offset. This stock still has more room to climb and sell it next year.