If I’m selling covered calls of a stock I’m happy to own (key part, happy to own more of) and selling OTM calls is my upside really limited? As the stock price approaches the strike price, wouldn’t setting a buy limit order at the same price essentially cancel it out? I know I’m going to get called away and make 100x the strike price which will exactly cover the cost of buying 100x of the stock?
I see the risk of higher downside which is really just equal to the risk of holding more of the underlying but with a higher cost basis (stock goes up and I buy in maybe more than I otherwise would have and then goes down before I’m called away so I don’t get that $)
What do y’all think? Am I missing something?