Document Type
Blog Post
Publication Date
10-31-2013
Contents
A Covered Call is created by purchasing stock and simultaneously writing a call on that stock. The position limits upside, as the stock will be called away if the price rises above the exercise price. But, the premium from selling the call provides extra income, which is the primary reason for executing such a strategy. See the article here, WSJ.
Recommended Citation
Dolvin, Steven D., "Covered Calls" (2013). All Chapters. 86.
https://digitalcommons.butler.edu/jmdallchapters/86