Covered Calls: How They Work and How to Use Them in Investing
Jun 4, 2025 · A covered call is an investing strategy that requires a seller of call options to own shares of the underlying security and deliver them if the option is exercised.
Anatomy of a Covered Call - Fidelity
A covered call, which is also known as a "buy write," is a 2-part strategy in which stock is purchased and calls are sold on a share-for-share basis. Losses occur in covered calls if the stock price declines …
The Covered Call Options Strategy | Charles Schwab
Apr 4, 2024 · First, let's nail down a definition. 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 …
Covered Call - Overview, Example, How to Use It
What is a Covered Call? A covered call is a risk management and an options strategy that involves holding a long position in the underlying asset (e.g., stock) and selling (writing) a call option on the …
What Are Covered Calls and Why Should Investors Use Them?
Feb 20, 2025 · Covered calls are a lower-risk options strategy that allow investors the opportunity to amplify returns and limit losses on an asset they already own.
What Is A Covered Call Options Strategy? | Bankrate
Aug 22, 2025 · 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.
Covered Call Options Strategy: Beginner’s Guide | TradingBlock
Oct 17, 2025 · The covered call is an income-generating, high-probability strategy with limited reward. It slightly reduces downside risk but caps your upside if the stock rallies.
What Is a Covered Call? (Explained Simply) - 2025
What is a covered call? Covered calls are an options strategy where an investor combines a long stock position with a short call option, aiming to generate income from their stock holdings while reducing …
What is a Covered Call? - stocktrak.com
What is a Covered Call? A covered call is an options trading strategy where an investor holds a stock and sells a call option on the same stock to generate additional income. The premium received from …
Covered Calls Strategy: Generate Income and Manage Risk
Aug 31, 2025 · A covered call is constructed by holding a long position in a stock and then selling or writing call options on that same asset, representing the same size as the underlying long position.