Ok, if I sell a call option then I get the premium. Ok say I own 100 shares of SPY. Looking at Yahoo's option chains, an April 85 call for SPY is $44.10 (http://finance.yahoo.com/q/os?s=SPY&m=2011-04). So if I were to sell that option, I would be paid $4,410, right? So if I just bought the shares on Friday and paid $131 for them, so that cost me $13,100. Then I got $4,410 for the option, so my cost is $8,690 ($13,100 - $4,410). So what happens then? When expiration day comes around I have to sell my shares at $85, so $8,500 total? So is my total profit then $8,690 - $8,500 = $190? And would that be my total profit no matter where the price of SPY went, as long as it was above $85/share and the option is ITM? What else can happen in this situation? Is there any case where I'd have to buy the option back or something?