Replies to post #135943 on Biotech Values

[HattieTheWitch]

Your post is one of the very few times—perhaps the only time—where I’ve seen someone acknowledge that selling calls ended up costing money.

No money was cost to the seller - the seller just didn't make what the seller could have.

If you sell a stock you bought at $10 for $15, and the second after you sold it it goes to $20, you haven't cost yourself $5, you've just missed out on the making of it.

Cost and opportunity cost are not the same thing.

[mouton29]

<<Your post is one of the very few times—perhaps the only time—where I’ve seen someone acknowledge that selling calls ended up costing money. >>

So his immediate cost was $.93 per share less the premium he got for writing the call. I'm going to guess that overall, the strategy was profitable for poorgrad compared to buy and hold -- perhaps substantially so.