That’s not how it works. You benefit even more with a price dip when you sell the Call because you can buy-to-close it cheaper and keep the profit, and the shares.
Discussion
There is no liquidation here. This is not trading with leverage. That’s for fools. I’m talking about a calculated options strategy.
Ok then I don't understand how it works. Do you have article to explain? I'm really curious to ubderstand.
interesting to think about this from standpoint of regaining control of a sold covered call when the price dips. i can see how it theoretically works.
it's just hard to see where and when it jumps next.