Question 34 options:

You own 100 shares of Netflix that $50 per share. You wrote a 30 day covered call for $1.50 premium and a strike price of $60. Now, you are on the day of expiration and the stock is trading at $58 per share. You have the ability to close out your position for $.50.

1. Calculate your net profit when closing out your position

2. Next you decide to sell a new call at $65 strike price while the stock is still at $58, collecting a $1.33 premium in the process. Calculate your new potential profit.

3. Finally, calculate your new breakeven based upon your second scenario and first scenario combined.