It would be nice if AEO stays above $13 dollar but there is no way of knowing if it will. I got a nice premium. If it closes on Friday above $13 then $720 would be 100% profit.

It is important to understand the difference between realized and unrealized capital gain/loss. The gain or loss is only realized when the underlying asset is sold. In the case of a capital loss, most or all can be washed out if asset is repurchased at a price lower than the original cost basis.