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Although you don't say, I am assuming that you sold the June $25 calls.

You need to add to option 1 that the stock could plunge by more than the $2.05 you receive in option premium. The problem with covered calls is that they only provide minimal protection from a stock plunge, while eliminating almost all upside potential.

I'm not sure what the difference is between your options 2 and 3. In both cases, the stock closes above $25 at June expiration and the shares get called away from you. In option 2, I believe you meant to say $27.05, not $27.15.

Jim
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