I have to say that three times recently folks were talking covered calls right before a major surge in stocks I owned. It is getting weird.
It happened on the apple, isrg and recently akam board.
I guess it is a good sign. I have come to welcome it.
If the stock drops, the value of the call will drop also, and therefore nobody will take the stock from you. That doesn't mean, of course, that you have to continue to hold the stock until expiration. The stock could be sold anyway and the option closed out by buying it back....and the option would be less to buy back than what you received for it in the first place since time decay would have eroded the time value and with the stock going down, intrinsic value would be decreasing as well. It's still incremental money. Maybe you're such a big spender that an extra few hundred dollars may mean nothing to you, but I would guess that many in this room would be happy with an incremental few hundred dollars extra for no more work than writing the call....
Still here - it is earnings season - no time to post. Still short. Great week in other names, but pretty poor in COH (at least for me). Sticking with the thesis - market gets spooked as soon as Lew Frankfort's insider sales start to hit the tape in February.
Yes money is money but if you do not get enough fee for the Call , Is it worth losing flexibility on common doing CALL is out or you will risk going naked or illegal if you are not Level-4 trader. Issue is are you getting enough fee for letting CALL go ;it's OK if stock just go up but can come down on hurry even more faster than going up. you will have to ride down just holding bag of CALL fee collected.
If you're going to be content with selling the stock if it hits the strike price, then it's all an incremental increase in dollars in the account, regardless of the commission cost. Money is money....and it's more than you would have if you had just sold the stock at that price. You're statement is nonsense.