What is the market price above which an individual will no longer have an effect on their profit after purchasing and writing calls?

The market price that defines the threshold above which an individual will no longer have an effect on their profit after purchasing and writing call options is known as the break-even point for their strategy. When writing calls as part of a covered call strategy, the writer generates income through the premium received from selling the calls, which can offset the cost basis of the underlying asset.

In this case, the market price of 95 serves as the critical point where the potential gains from the calls written are fully realized, and any movement beyond this price does not affect the profit level generated by the calls. If the underlying asset exceeds this price, the upside profit from the stock is capped by the exercise of the call options sold, and additional price appreciation does not affect profit since the options will be exercised.

Therefore, understanding this concept helps traders identify their profit potential and limits based on the premiums received and the price of the underlying asset. In the context of the options market, this pricing strategy emphasizes performing due diligence to appropriately manage risk and reward.