Uploaded May 2024 | Updated September 2026, 1 week ago
A covered call is when an investor sells a call (typically out-of-the-money), but owns the underlying equity. In exchange for giving someone else the right to buy the stock you own at a specific strike price within a set time frame, you receive a premium. It is a common strategy that investors use to earn additional income from their stock positions without typically taking on a large amount of risk.
public.com/options
Disclosures:
Investors must review the Options Disclosure Document (ODD): public.com/ODD. Options are risky and not suitable for everyone. See Fee Schedule and Options Rebate T&Cs: public.com/disclosures. Brokerage services for US-listed securities and options offered through Public Investing, member FINRA & SIPC. Supporting documentation upon request.
A covered call is when an investor sells a call (typically out-of-the-money), but owns the underlying equity. In exchange for giving someone else the right to buy the stock you own at a specific strike price within a set time frame, you receive a premium. It is a common strategy that investors use to earn additional income from their stock positions without typically taking on a large amount of risk.
public.com/options
Disclosures:
Investors must review the Options Disclosure Document (ODD): public.com/ODD. Options are risky and not suitable for everyone. See Fee Schedule and Options Rebate T&Cs: public.com/disclosures. Brokerage services for US-listed securities and options offered through Public Investing, member FINRA & SIPC. Supporting documentation upon request.
