LogFAQs > #959508413

Moonroof posted...

So if the premium outweighs the loss of sale, it should be made? In other words, if a stock is at $10.10 and I sell a call at $10 for $100 premium, and the cost of that 1% loss is under $100, why not do this?

I like selling calls to exit positions but it has risk.

If the position falls to 9.50 you are better off than having not sold the covered call, but you are worse off than if you had just sold the stock at 10.10

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DPOblivion beat us all.