I have had bought ROKU 85 shares at $122 while back. Since she went down in 60s I decided to average cost and bought 15 more shares at cheaper price which brought down my average cost to 114 per share. This morning I had 100 total shares of Roku at $114 per share. Still I want to reduce my cost basic but can not buy more shares since she is already trading more than my existing cost basis. So I decided to SELL $150 call option expiring May 08 to receive premium of $6.50 which brought my cost basis to $108 per share. Now my question is what happens to my shares when ROKU price is below or above $150. Here is my understanding, 1. If Roku stock is at any value BELOW 150, I still owns the shares but at price $108 per share. 2. If Roku price is at any value ABOVE 150, then all 100 shares will be wiped from my account and my account will be credited with USD 15,000. [Max profit here would be (150-108)*100 = 4200] Is my understanding right? #roku #options #trading #tradingtech #coveredcall #stockmarket #stockoptions #stock #etrade