Learn How To Do Covered Call

Covered Call Income Generating Stratergy

A covered call is a popular income-generating strategy where an investor sells a call option against shares they already own.This strategy generates premium income and can work well in sideways or moderately bullish markets.

How It Works

You own 100 shares of a stock.
You sell 1 call option contract (each contract = 100 shares).
You receive a premium upfront.
If the stock stays below the strike price, you keep the shares and the premium.
If the stock rises above the strike, your shares may be sold (assigned), but you still keep the premium.

➡️ Next: Cash-Secured Put Strategy

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