Covered Call
Owning the underlying while selling a call option against it.
Full Definition
A covered call generates income from the premium sold. The tradeoff is capping upside potential. It is a popular income strategy for long-term holders.
Owning the underlying while selling a call option against it.
A covered call generates income from the premium sold. The tradeoff is capping upside potential. It is a popular income strategy for long-term holders.