Covered Call

Sell call against owned shares

What is Covered Call?

Covered Call Selling a call against 100 shares you own. Generates income from premium but caps upside. The most popular options strategy for beginners.

Complete Definition

Selling a call against 100 shares you own. Generates income from premium but caps upside. The most popular options strategy for beginners.

Example

Own 100 AAPL at $150. Sell $160 call for $2. Keep $200 premium. If AAPL stays below $160, keep shares + premium.

Related Terms

Cash Secured Put Wheel Strategy Buy Write

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