Alan answers a question posed by Mark, who asks:
I am confused by the math when my stock rises a lot. I bought SEDG for $94.27 and sold the $90.00 call for $6.30. The stock moved up to $104.85 and the option is $14.90. If I buy back to option, do I lose my initial premium?
It’s the 2nd Wednesday of the month. Time for another original episode of Ask Alan. AA#183, Analyzing the Cost-To-Close When a Strike Moves Deep In-The-Money Become a premium member today, and tune in to the educational power of the complete library!
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