Skip to content

A covered call is one of the popular options trading approaches that entail selling (or “writing”) call options on a security that a trader already owns. The trader will be paid a premium in exchange for granting the buyer the right to purchase the asset within the specified period for a certain “strike price.” Selling covered calls is a very cautious approach in the realm of options trading because the trader will incur no further costs if the option holders exercise their right to purchase the asset. 

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.