Wait, I think I got it. You got the 800 bux for selling the call, it expires worthless, and your stock is simply worth $50 per share, rather than the 107 you bought it for.
Correct.
By selling the call for 8 he lowered his break-even to 99 from 107.
He still owns the stock at 50. Only gets rid of the stock if price closes above 115.
Selling the call limits the profit but doesn't limit the loss.
