Brinker International, Inc. (EAT) Social Stream
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@Djprav OK, this is very easy. Take a look at my trade for $EAT. I paid $48.55 for the stock. I Sold to Open 1 Call, strike $48, price $2.52 and received $252.00 (I'm rounding the numbers). Somebody bought the Call and paid me $252.00 instantly. That means my net cost of shares is $46.03 (48.55 mins 2.52 equals 46.03.IncomeStrategies, published November 30, 2020
Today $EAT is above the strike $48 so my stock will be sold at $48.00. Since my net cost is $46.03 that means I am left a profit of $197.00.
All we need to concentrate on is if the stock is above or below the strike. Don't worry about plus or negative on the option side. That really has nothing to do with our calculations.