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<p>[QUOTE=&quot;calcol, post: 3645365, member: 77639&quot;]I think you need to include what happens if the buyer of the call exercises it:</p><p><br /></p><p>1.&nbsp; Gold price stays the same.&nbsp;&nbsp; Buyer of the call unlikely to exercise the call, but might if it&#039;s a convenience or shipping issue.&nbsp; If they exercise it, you get $15K for your gold plus the $330 option sales fee.&nbsp; If they don&#039;t exercise the call, you keep your $15K-worth of gold and still get the $330 option sales fee.</p><p><br /></p><p>2.&nbsp; Gold goes to $1400 per ounce.&nbsp;&nbsp; Buyer of the call would be insane to exercise it because they can buy the gold more cheaply at the market price.&nbsp; You get to keep your $14K-worth of gold (has an unrealized loss of $1000) and the $330 option sales fee.</p><p><br /></p><p>3.&nbsp; Gold goes to $1600 per ounce.&nbsp; Buyer would be insane not to exercise the option.&nbsp; They can buy your gold for $15K and immediately sell it for $16K.&nbsp; Your gold is gone, but you have $15K for it plus the $330 option sales fee.</p><p><br /></p><p>Don&#039;t forget; there will usually be transaction fees to pay as well when you sell or buy options.</p><p><br /></p><p>Cal[/QUOTE]</p><p><br /></p>

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