The Downside Of Covered Calls

In after hours trading, VVUS shot up to $20.82.  If I had just bought the shares and not done the covered call, I would have made $931.

Sigh.

But at least I can be fairly certain that it won't tank.  I'm going to make $88 dollars on the combined trade, an annualized return of 111%.

So, the downside of a covered call is that you may miss out on a large move upwards, as this trade has so keenly demonstrated.