Ah_Meng
2025-11-02
Replying to @Super_Gal:No... after you sell the call options, if the stock price goes up beyond the strike price, the principal stock would be called away, so the stock price gain doesn't belong to you anymore. Why I know? I suffered that fate for $CRITICAL METALS CORPORATION(CRML)$ [Spurting] [Facepalm]//@Super_Gal:question 7 doesn’t really have the correct answer? Shouldn’t it be stock gain plus premium received?
How Much Chance Left for 2025? Keep Climbing or Hedge?
November’s here — 2025 is counting down! With just weeks left in the year, investors everywhere are discussing: Is there still room to run, or time to lock in profits? Some analysts say there’s still room to climb 📈 — supported by the Fed’s rate cuts, rising AI-driven profits, and corporate earnings beating expectations. But others disagree, saying we should watch out for high valuations, and year-end volatility could spark a short-term pullback.
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Comments

  • Wonder_Woman
    2025-11-03
    Wonder_Woman
    Then it should be current minus strike plus premium…
    • Wonder_Woman: 
      Thank you for your sharing!
    • Ah_Meng: 
      Btw, you can try selling covered calls to test it out if you have not tried. However, do it with something you don't mind letting go and hopefully find those with higher premium. Low premium just doesn't worth the time and effort...
    • Ah_MengReplyWonder_Woman: 
      There is... just the premium... if you sell call options... similar to selling puts... their main purpose is to collect premiums. The big difference for selling covered calls and selling puts is in the former, seller risks losing the principal while the latter gets assigned principal.
    • Wonder_WomanReplyAh_Meng: 
      Yes, I fully understand but then There’s no correct answer in the MCQ?!
    • Ah_Meng: 
      Once you sold a call, there is only 2 possibilities. 1) the contract is out of money upon expiry, the seller collects the premium with the principal intact; 2) the contract is in-the-money, the seller keeps the premium, principal got called away. The current price has nothing further to do with the seller if it is in-the-money. Of course, when the principal gets called away, the seller gets paid tat the strike price for that principal that was sold. Options - an obligation to buy or sell at a future agreed price. The price has been agreed when the option contract is exchanged. Any upside of future price is attributed solely to the buyer, not seller.
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