Covered Calls: Buying

: The Option Premium is yours to keep regardless of whether the stock is "called away" or the option expires worthless. 2. Steps to Buy (Set Up) a Covered Call

You can either sell calls against stock you already own or execute a (buying stock and selling the call simultaneously). Covered Calls Strategy: Generate Income and Manage Risk buying covered calls

A is a strategy where you sell the right to buy stock you already own to someone else in exchange for an immediate cash payment called a premium . It is "covered" because if the buyer exercises their right, you already have the shares to deliver. 1. How the Strategy Works : The Option Premium is yours to keep