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What is Covered Call Writing Explained about?
Covered call writing is an investment strategy that combines stock ownership with selling call options. It involves buying stock and then selling call options on that stock to generate income. The key points are: (1) the stock is bought before selling call options, which gives the buyer the right to purchase the shares at a set price; (2) if the stock price stays below the call price, the options expire worthless and the investor keeps the premium; (3) if the stock rises above the call price, it may be call
- Author
- checchino
- Language
- EN