Covered Call

Market Terms

We don't know everything about the markets.  We're just devoted to learning.  Taken from those smarter than ourselves, here's how we define Covered Call.

A popular options trading strategy to generate income through options premiums.  To execute this call, an investor holds a long position in an asset while selling call options on that same asset.  It is a strategy utilized by an investor who plans to hold an underlying stock for a long time but doesn’t expect a substantial price increase in the near future.  This is ideal for investors in relatively stable stocks.  This makes covered calls a neutral trading strategy.