Covered Call
InvestingGlossary term
Definition
An options strategy where an investor sells call options on stocks they already own. Generates income from premiums but limits upside potential if the stock rises above the strike price.
Related terms
- Call OptionA contract giving the buyer the right (but not obligation) to purchase a stock at a specified price within a specific timeframe. Used for speculation or hedging strategies.
- OptionsContracts giving the right, but not obligation, to buy (call) or sell (put) an asset at a set price before expiration. Used for speculation, hedging, or income generation.
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