At the close of Friday (Nov 13th), NIO is trading at $44 and the $44 (strike price) call option that expires on Nov 20th is selling at $5.15. Suppose I want to set a covered call using the call option above what should I do? If stock price by the end of Nov 20th is $45, then how much money I am making?

Answer rating: 100% (QA)

To set up a covered call you would buy 100 shares of NIO and sell one call option ... View the full answer