The article was reviewed, fact-checked and edited by our editorial staff. A covered call is an options trading strategy that offers limited return for limited risk. A covered call involves selling ...

Among the benefits that investors can hope to realize by utilizing ETFs within their portfolios, tax efficiency is one most ...

GPIQ's options strategy involves selling covered calls against 25-75% of the holdings, enhancing income potential. See why I ...

To maximize using covered calls, you should select stocks you believe will not experience highly volatile movements during the term of your options contract. Let’s go through a few good ...

In its most basic terms, a covered call is an options strategy where investors sell a contract to buy shares they already own. For example, an investor who owns Microsoft Corp. (ticker ...

While Microsoft's current dividend yield is modest at 0.76%, you could generate additional income by selling one call option. By selling a covered call, you grant the buyer the right, but not the ...

You sell call options when bearish on a stock's outlook. "Naked" options selling carries a much higher risk than "covered" positions where you own the underlying stock as protection. That's ...

against round lots of stock to form a covered call position is allowed in margin and cash accounts. Since each long call gives the buyer a right to buy 100 shares of stock at the option's strike price ...

A benefit of choosing married puts from the list of available options strategies is that the trader is able to cap his ...

You’re $1 better off than if you hadn’t sold the option at all. From the below exhibit, you can see that a covered call enhances return when the underlying security is either flat or down.