Covered Calls: How They Work and How to Use Them in Investing
Jun 4, 2025 · What Is a Covered Call? A covered call is a sale of call options by a seller who owns shares in the underlying stock or other asset. The seller is creating an additional stream …
Options Trading: Covered Call Strategy Basics | Charles Schwab
Aug 27, 2025 · A covered call gives an option buyer the right to purchase stock shares an option seller already owns (hence, "covered") at a specified strike price and at any time on or before …
What is a covered call? - Fidelity Investments
May 9, 2024 · 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.
What Is A Covered Call Options Strategy? | Bankrate
Aug 22, 2025 · A covered call is an options trading strategy that offers limited return for limited risk. A covered call involves selling a call option on a stock that you already own. By owning …
Covered Call Options Trading Explained | Britannica Money
A covered call involves taking a short position in a call option on a stock you own, typically at a strike price that’s out of the money (i.e., higher than where the stock is currently trading).
What Are Covered Calls and Why Should Investors Use Them?
Feb 20, 2025 · The phrase "covered call" derives from the fact that you possess the shares you are offering in the options contract. In essence, your existing stock holdings "cover" the …
Selling Covered Calls: How to Do It - NerdWallet
What is a covered call in options trading? A covered call is an options trading strategy that involves selling (also known as “writing”) call options on a stock you already own.
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 …
How to Use the Covered Call Option Strategy
Oct 24, 2025 · A covered call is an options strategy with undefined risk and limited profit potential that combines a long stock position with a short call option. Covered calls are primarily used …
What Is a Covered Call? - The Motley Fool
Oct 9, 2025 · A covered call is an options investing strategy where investors sell a call option contract to augment returns for a stock they already own.