Actually, since the trade he's describing is a covered call, his theoretical profit would only be 66% (not 285%), since the profit of a covered call is capped at the strike price of $10.
Assuming he meant he bought 100 shares of NCLH, his profit on the shares would be $13 when it reaches the price of $10, plus the $638 of the short option premium, therefore only 66% ($648/$987 =66%).
Assuming the option buyer would only exercise if the stock reaches > $16.38 (to break even on their call debit), Tynan's profit could in practice go up to 130% = [($16.38-$9.87)*100+$638]/$987
Romain
Actually, scratch my last sentence, the call buyer would still exercise when the stock reaches at or above $10, meaning the profit is indeed capped at 66%.
Actually, since the trade he's describing is a covered call, his theoretical profit would only be 66% (not 285%), since the profit of a covered call is capped at the strike price of $10.
Assuming he meant he bought 100 shares of NCLH, his profit on the shares would be $13 when it reaches the price of $10, plus the $638 of the short option premium, therefore only 66% ($648/$987 =66%).
Assuming the option buyer would only exercise if the stock reaches > $16.38 (to break even on their call debit), Tynan's profit could in practice go up to 130% = [($16.38-$9.87)*100+$638]/$987