When you sell a covered call, you give someone the right to buy shares of the underlying stock from you at a specific price, called the strike price. In return, you receive a premium, which is the amount of money you receive upfront for selling the call. The biggest benefit of selling a covered call […]
What Are Covered Calls In Stocks
A covered call is a financial contract between two parties, typically entered into by investors who want to generate income from their holdings. The buyer of the call option has the right, but not the obligation, to buy a security or other asset at a certain price (the “strike price”) during a certain time period. […]
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