Two "dangers" that covered call writers face are a big decline in the underlying stock and a big up move. The big up move isn't really a "danger" but a good deal of the upside is given up when it occurs. Both happened to me with today, with AMD going down on the Intel announcement of new chips to compete with AMD, and PDLI moving up when a drug that they get royalties on got a 12-0 vote to bring it back to market.
So, not a happy day. To add insult to injury, my sell of AMD, while not at the lows for the day, was not that far from it. Such is life.
Good luck to all the readers.
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