There is an example which states: The stock can drop two points before you go into the red. Losses will be incurred below $70 to zero. Stop arguing about the hidden evil in semantics. Are you guys high? Maybe your suffering from losses and looking for a bogeyman.
I'm not sure what part you're saying is bs, is it the word "should"? Reason being, and I don't know if this is why Schwab used "should", but my guess is that there is one obscure exception, quarterly options on SPX expire on Thursdays, but the $ amount used to calculate the expiration price is the first print of SPX on Friday morning. I realize you're talking about a stock here, but Schwab's choice of verbiage might be related to this. I'm not 100% sure, but the call someone sold that appeared to be worthless on Thursday's close, could go into the money if the SPX gaps up overnight and the 1st print is much higher than the last print on Thursday.
In arbitration Schwab would win. However, if Schwab is trying to avoid misunderstanding with clients, it would state when losses occur in the position
I am continually amazed at the knowledge, curiosity, scholarship, humility and overall intellect demonstrated by this group of "elite" traders. It gives me confidence in my ongoing ability to extract profits from the market, indefinitely.
why? You aren’t trading against the OP. He’s poor. You are competing with hedgefunds to trade against market makers who are biasing their quotes based on the massive flows of pension funds. in my 20 years of trading only once have retail flows ever been a significant source of alpha in the options market and that was in 2020.
Do you know how many people use Charles Shwab, and do you know for how long they have been around? Don't you think that if they were intentionally, or even accidentally, been "misleading" their clients about something as simple as a covered call that they would have been discovered by now? Fined? Been forced out of business? Perhaps it is you who is misunderstand what you are reading. This is not the first thread you have been befuddled in about covered calls.
It seems like OP is trying to learn options trading, and has suffered great difficulty in comprehending it. just see the numerous new threads he has created. it is not the end of the world; just trade stocks/futures outright.