What happens if you sell a covered call far ITM for a large premium? Is the only loss your shares and opportunity cost once the option is exercised by the call holder?

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Yes. But it gets exercised at that price. Meaning you lose any appreciation in the stock. But if the stock decreases you still get to keep the premium.

Obviously the premium beyond the stock price reduces the deeper ITM you go.

Depending on expiry and when you acquired your shares you may lose out by paying the higher short term gains tax on what would otherwise have been long term gains.

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