Covered Calls: How They Work and How to Use Them in Investing
Jun 4, 2025 · A covered call is an investing strategy that requires a seller of call options to own shares of the underlying security and deliver them if the option is exercised.
What Is A Covered Call Options Strategy? | Bankrate
Aug 22, 2025 · A covered call is an options trading strategy that offers limited return for limited risk. A covered call involves selling a call option on a stock that you already own.
Options Trading: Covered Call Strategy Basics | Charles Schwab
Aug 27, 2025 · A covered call gives an option buyer the right to purchase stock shares an option seller already owns (hence, "covered") at a specified strike price and at any time on or before …
What Are Covered Calls and Why Should Investors Use Them?
Feb 20, 2025 · The phrase "covered call" derives from the fact that you possess the shares you are offering in the options contract. In essence, your existing stock holdings "cover" the …
What is a covered call? - Fidelity Investments
May 9, 2024 · A covered call is an options strategy designed to generate income on stocks you own—and don't expect to rise in price anytime soon. Here’s what you should know.
Selling Covered Calls: How to Do It - NerdWallet
Jan 6, 2025 · What is a covered call in options trading? A covered call is an options trading strategy that involves selling (also known as “writing”) call options on a stock you already own.
Covered Call - Overview, Example, How to Use It
What is a Covered Call? A covered call is a risk management and an options strategy that involves holding a long position in the underlying asset (e.g., stock) and selling (writing) a call …
Covered Calls Strategy: Generate Income and Manage Risk
Aug 31, 2025 · A covered call is constructed by holding a long position in a stock and then selling or writing call options on that same asset, representing the same size as the underlying long …
The Covered Call Options Strategy | Charles Schwab
Apr 4, 2024 · First, let's nail down a definition. A covered call is a neutral to bullish strategy where a trader typically sells one out-of-the-money 1 (OTM) or at-the-money 2 (ATM) call option for …
How to Use the Covered Call Option Strategy
Oct 24, 2025 · A covered call is an options strategy with undefined risk and limited profit potential that combines a long stock position with a short call option. Covered calls are primarily used …