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A covered call is a popular options strategy used to generate income in the form of options premiums. Investors only expect a minor increase or decrease in the...
A covered call is a popular options strategy used to generate income for investors who think stock prices are unlikely to rise much further in the near term.
A covered call is a neutral to bullish strategy where a trader typically sells one out-of-the-money 1 (OTM) or at-the-money 2 (ATM) call option for every 100 shares of stock owned, collects the premium, and then waits to see if the call is exercised or expires.
A covered call gives someone else the right to purchase stock shares you already own (hence "covered") at a specified price (strike price) and at any time on or before a specified date (expiration date). Covered calls can potentially earn income on stocks you already own.
In its most basic terms, a covered call is an options strategy where investors sell a contract to buy shares they already own. For example, an investor who owns Microsoft Corp....
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...
A covered call is an options strategy designed to generate income on stocks you own—and don't expect to rise in price anytime soon. Here’s what you should know.
In this article, you'll learn more about covered calls, how the strategy works, and how to apply leverage to further increase capital efficiency and potential profitability. Key Takeaways
The covered call strategy is considered a first lesson in options trading, but choosing which call options to sell often requires going beyond the options basics.
A covered call is the most basic and least risky of options strategies, suitable even for investors new to options trading. A covered call entails selling a call option on a stock that...