Options - I have 100 TD shares currently trading at $65 I...

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I have 100 TD shares currently trading at $65. I think the price will either remain the same or drop even lower in the near future. CALL OPTION SELLER BUYER Well I think TD shares are going to be much higher . I’m willing to sell 1 call option with a strike price of $62 . But I will charge $3/share premium . My breakeven price is $62 + $3 = $65 . I will only exercise the right if TD’s price rises above $65 . I get to keep the $300 premium no matter if you exercise the right to buy or not. TD $65 $67 Yes! I will now exercise my right to buy your shares at $62 and I can immediately sell it on the market for $67. But I will only have a profit of $2/share due to the $3 premium. Yikes, I made the wrong bet. I’m obligated to sell the shares to you now. I lost the opportunity to make the gain on the price increase myself. But at least I got the $300 premium. $61 Oh no, I made the wrong bet. I will not exercise the right to buy at $62. My total loss is just the $300 premium .
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