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Covered Call Example: Profit, Loss and Assignment

Covered Calls

This segment applies numbers to a covered call, showing profit and loss at several stock prices, how the new breakeven point is set and what assignment means for the position.

0:00 The Covered Call Example Setup
0:23 Downside: The Premium as Cushion
0:54 Upside: Strike Selection and Capped Profit
1:56 Max Profit at the Short Strike
2:38 Reading the P&L Graph and New Break-Even
3:45 Poll: What a Covered Call Seller Does

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