Uploaded August 2025 | Updated September 2026, 2 weeks ago
The covered call is a strategy to earn some income on stock you already own. It's done by selling call options. If the person who owns the contract exercises it, you're covered since you already own the shares. If they don't exercise, then you keep the premium.
The downside is if the stock jumps above the strike price, then you miss out on a higher potential profit if you had simply kept the shares.
The covered call is a strategy to earn some income on stock you already own. It's done by selling call options. If the person who owns the contract exercises it, you're covered since you already own the shares. If they don't exercise, then you keep the premium.
The downside is if the stock jumps above the strike price, then you miss out on a higher potential profit if you had simply kept the shares.
