Ms. Spencer sells-to-open an at-the-money 105-strike call for $1,045. The underlying stock rises to $136.95 per share at expiry. Ms. Spencer:
Gains $1,045 in premium after option expiry.
Loses $1,045 in premium plus $3,195 in capital losses.
Gains $1,045 in premium plus $3,195 in capital gains.
Gains $1,045 in premiums and loses $3,195 in capital losses for net loss of $2,150.