Desde Investopedia

TERM OF THE DAY

Covered Call A covered call is an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously has a short position via the option to generate income from the option premium. A covered call is also known as a "buy-write".

Breaking it Down: The outlook of a covered call strategy is for a slight increase in the underlying stock price for the life of... Read More