At A,profits increase at fastest rate with time. At B, losses increase at maximum rate with time. You hold stock are sure that the price will not fall. LOSS is similar to that incurred with ordinary stock ownership, only off-set partially by the option premium received. Main loss could be the opportunity loss if the market rises strongly.
Position is a growing asset.
As time passes, value of position increases as option loses its time value. Our unique Option Research Reports combine option strategies valuations, key technicals and fundamentals. Analyze option strategies for any stock or index with our powerful Excel application OptionStrategies.