If you already own 100 shares
Income call
For income on GILD you already hold: sell the Oct 16 $165 call and take $56 now. If GILD climbs to $165 by Oct 16, your 100 shares are sold at $165, so only do it if you're happy selling there.
If it climbs past $165 your 100 shares are sold at $165 and you keep the $56. That is the trade working, not a loss.
The call order
ActionSell to open
ContractGILD Oct 16 $165 call
You get$56 (limit about $0.56)
If it climbsYour 100 shares sell at $165
Chance your shares are soldabout 11 in 100
After removing the trend-6% a year