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Learn about options strategiesMaximum Loss
-$45,998
19913%
Maximum Profit
$4,001
+8.7%
Return on Risk
+8.7%
Reward / Risk
Stock Price ($)
Profit zone Loss zone Break-even At expiration Before expiration
- You collect $231 in premium against shares you already own.
- The premium lowers your effective cost basis and cushions small declines.
- Your maximum profit is reached if MSFT closes at or above $500.00.
- Gains above the strike are given up in exchange for the income.
- You still carry full downside risk on the 100 shares.
- If MSFT rallies hard, upside above the strike is capped.
- Assignment can happen early, especially around dividends.
Illustrative example only, using demo data. Not investment advice.