After the fall

Say you were assigned XLF at 65, well above where it trades now. These are three covered calls you could sell from here. Trade analysis counts from today's price, not from what you paid, so the loss you're already carrying isn't on these charts. The underlying was chosen to illustrate the idea; it isn't a recommendation. Quotes are delayed. Contracts last selected September 29, 2026.

It keeps the whole recovery up to 65, and pays almost nothing for it.

It pays real premium. If the shares recover past this strike, they're called away there, and the loss is locked in.

The same strike as the first, months further out. More time pays more premium, and you keep the recovery, but you're committed for longer.

The forecast range runs from today's price up to 65, so Probability shows how likely the model thinks a full recovery is by each expiration. Read the lesson: Three ways to run it.