The covered call involves writing a call option contract while holding an equivalent number of shares of the underlying stock. It is also commonly referred to as a "buy-write" if the stock and options are purchased at the same time.
Symbol: COTY
Current Price $13.88
Num. shares: #100
Total cost: $1,388
Option:
WRITE
Option: 22nd June $16.00 Call
Price per option: $ 1.01
Contracts: #1 x 100
Total cost: $101
Maximum Risk: $1286.90 at 0.20 on day 0
Maximum Return: $308 at a price of $16 at expiry
Breakevens at expiry: $12.87
Symbol: COTY
Current Price $13.88
Num. shares: #100
Total cost: $1,388
Option:
WRITE
Option: 22nd June $16.00 Call
Price per option: $ 1.01
Contracts: #1 x 100
Total cost: $101
Maximum Risk: $1286.90 at 0.20 on day 0
Maximum Return: $308 at a price of $16 at expiry
Breakevens at expiry: $12.87