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A covered call is a basic options strategy that involves selling a call option (or “going short” as the pros call it) for every 100 shares of the underlying stock that you own. It’s a ...
One covered option is sold for every hundred shares the seller wishes to cover. [1] [2] A covered option constructed with a call is called a "covered call", while one constructed with a put is a "covered put". [1] [2] This strategy is generally considered conservative because the seller of a covered option reduces both their risk and their ...
Option strategies are the simultaneous, and often mixed, ... Writing out-of-the-money covered calls is a good example of such a strategy. The purchaser of the covered ...
However, there are a number of safe call-selling strategies, such as the covered call, that could be utilized to help protect the seller. Call options vs. put options
A covered call position is a neutral-to-bullish investment strategy and consists of purchasing a stock and selling a call option against the stock. Two useful return calculations for covered calls are the %If Unchanged Return and the %If Assigned Return.
This strategy involves buying a call and a put option at the same expiration and same strike price, typically as close to the stock price as possible. If the stock makes its big expected move, one ...
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