Shorts YouTube 0:55 Published 2025-12-01

What is a Covered Call?

The covered call strategy explained simply — how to sell call options against stock you own to generate regular income.

What You'll Learn

  • Generate income by selling calls against stocks you own

Video Summary

A covered call is one of the most popular options strategies for generating income. You own 100 shares of a stock and sell a call option against it. You collect the premium immediately as income. If the stock stays below the strike price at expiration, you keep the premium and your shares. If it goes above, your shares get called away at the strike price — but you still profit from the premium plus any gains up to the strike.

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