Tier 1 Covered for Options

[OptionsOptionsOptions]

So it’s the strike price that determines your overall PnL.

My thinking was take the PnL from the shares and PnL from options premium to determine net PnL. But when it comes down determining it I was under the impression that I would use my initial buying price per share. Get the difference 20-16=4 and then the difference in opt premium (3-2) + 3 = 4 .... but it should be the strike-expiration price 23-16=7 Andy using the previous opt premium 7-4=3. So a $300 loss...


So I am most confused on do I use my initial buying price of 20 or the strike of 23?

• IMO ........ You are severely limited with options if all you can trade is covered calls.
• Re-apply to a broker and get an account you can trade option spreads and option long positions.

 

[BuySellSideTrader2020]

• IMO ........ You are severely limited with options if all you can trade is covered calls.
• Re-apply to a broker and get an account you can trade option spreads and option long positions.

I don't understand why they didn't grant me full approval, on my last account I had with them, I had full access. Looks like someone will be getting a phone call!