You can buy the option to close it if you want to keep your shares. Otherwise you'll get paid $11,200 for your shares on Friday and you can just buy more at whatever the current price is then. Depends what you think the stock is going to do by Friday.

I'm actually confused why your account is only $7,333 if you are holding 100 shares of $NVDA.

In order to sell a call using Robinhood, they permit the user to own 100 shares of the underlying stock. (Aka they do allow not naked sell- no one should 🤣). Selling a call is synonymous for “shorting a stock” and your shares are what are used as your ‘collateral’. At the time of expiration if your “sell call” is in the money for the ‘buyer’ you have the potential of being called per the contract to sell those shares (listed above as your collateral. Whether or not you “sell call”, which are backed by your shares, (rather than banking on the funds to have to sell 100 of those shares, because RH doesn’t let you take that route) is determined by the OCC. I as to keep your shares, I am not where you are at with your trading or your plans, strategy. Therefore, it would be unfair to give guidance as I am also not a professional. However, whether you get called or not to sell those shares.. That will be determined at 3:30pm EST at the end of Robinhoods options trading day. Now, that is the very basics. Anyone else want to add to this. Please feel free! @applbottomjeans is very well articulated and I’m sure if they have the time, can further add on, or expand? 😀 I really hope this helps? 😅

Roll out and up

Roll position for next week and higher strike price. Collect new premium for rolling over your covered call.