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You own some shares of AMZN in your long term portfolio, currently trading at $1,993, and...

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Finance

You own some shares of AMZN in your long term portfolio,currently trading at $1,993, and are thinking of getting some extraincome by selling covered calls. You sell 200 shares worth of 3month call options on AMZN, with a strike price of $2,121 and apremium of $12. At expiration, AMZN is trading at $2,024 in thespot market. What is your net profit on this position?

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Option is a derivative which gives its holder a right to buy or sell underlying assets but not the obligation on expiration date at specific price There are two parties of    See Answer
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You own some shares of AMZN in your long term portfolio,currently trading at $1,993, and are thinking of getting some extraincome by selling covered calls. You sell 200 shares worth of 3month call options on AMZN, with a strike price of $2,121 and apremium of $12. At expiration, AMZN is trading at $2,024 in thespot market. What is your net profit on this position?

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