Covered Call

Covered Call

A short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the holder of that option decides to exercise it.

Related posts:

1. Covered Put
2. Covered Call Writing Strategy
3. Being Paid to Receive a Dividend, Covered Call
4. Covered or Hedge Option Strategies
5. Put-Call Parity Relationship