This is a theoretical selling of an option. If I decided to sell this I would gain a premium of around $4,000. I already have $10,000 worth of shares so the new total would be $14,000 (not counting brokerage fees).

I am confused about why anyone would do this. If the shares are currently around $100 and the strike price is set at $60 does that mean the buyer could simply sell after buying and in that effect the buyer would be swapping their $4,000 for the seller's $10,000? Thus, the seller loses $6,000.

Or would this only occur if the shares did indeed drop below $60?

Please explain if this is a stupid move on the buyer's part or the seller's part.

Thank you for any help with this problem.