Hmmmm… not really. I sold a call option on XPO for 1$ and bought it back for 6.75$. At first glance it looks like i made that loss of 575$.
But – i not only bought that option back. I rolled it out. That means i sold another call. One month in the future. For 7.1$. Strike: 95$.
So what can happen on expiration date?
1. XPO is above 95$. I receive 710$ and 100 XPO shares are sold for 95$. (The shares were booked to me throught a sold put for 90$ so i would have an additional profit of 500$)
2. XPO is below 95$. I receive 710$ and 100 XPO shares stay in my account.
Definitely i would have a minimum profit of 135$ (710-575).