maxmeomeo

I got #43 wrong as well…my logic was:  if you buy the stock at $10 and it goes up to $50 and you sell a deep-ITM call at a $25 strike, and the price at expiration is $43, then you deliver the stock and receive $25 per share, which equates to a $15 gain plus the call premium (so effectively locking in a minimum value for the stock as long as the call you’re selling expires in the money and is above your desired gain).  However, this strategy completely blows up if the stock tanks and the call expires worthless - so in retrospect I no longer think that the covered call offers any actual downside protection.