Alright, so I have been reading up on options (almost made it through one whole book! lol) and I have tested the waters with a fairly safe trade. At least I hope it is safe. That is where the question comes in. Here is what I did: I bought 200 shares of YELP at 24.8499 per share. The I placed the following option trade: Sell to Open qty:2 YELP Jun 22 2013 25.0 Call Limit 2.05 It went through at the $2.05 amount Here is what I was trying to do with that: Buy the stock, make a few hundred bucks on selling the covered call option. If the stock goes high it doesn't matter since I made my $2/stock and I am happy. If it goes low I keep the stock and am fine with that too. The question is, is what I intended to do actually what I did? I believe that I did it correctly, but my confusion comes as a result of how it is being reported on my trading account (tdameritrade). It is showing the option as a gain of -$230, which is confusing to me. Just because the option is worth more right now than it was when I sold it (the stock has gone up in value), how is that a loss to me? I still made my $400, so I am confused as to what is being displayed. I am attaching an image to this post that shows the status of the option trade I made. Any help would be appreciated. Thanks!