
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.
What is a covered call? - Fidelity Investments
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 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.
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 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. When you purchase through …
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. Before selling a covered call, set your objectives and exit …
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.
Selling Covered Calls: How to Do It - NerdWallet
Selling covered calls is an options trading technique that can generate income from your stock holdings. Many, or all, of the products featured on this page are from our advertising partners...
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 …
Covered Call Definition and Examples - financecharts.com
By definition, a covered call limits the investor's potential upside profit on the underlying stock in exchange for immediate income in the form of the option premium. This strategy is one of the …