How To Write Covered Calls
Examples
Tech Stocks
Blue Chip Stocks
Dividend Stocks
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Examples
Tech Stocks
Blue Chip Stocks
Dividend Stocks
Growth Stocks
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How to get started
Step 1
Enter the stock symbol, strike price, and expiration date for the covered call you want to write.
Step 2
Adjust your strategy based on your risk tolerance and financial goals. Our AI will guide you through the process.
Step 3
Follow our actionable advice to execute your covered call strategy and monitor its performance over time.
Main Features
Covered Call Basics
Selling covered calls is a strategy where you sell call options against stocks you already own. This approach, known as covered call writing, allows you to generate additional income on your holdings. Learn what a covered call is, how to sell covered calls, and the benefits of this strategy.
Covered Call Strategies and Examples
Explore various covered call strategies designed to maximize your income. From selling calls for income to writing covered calls for a living, our examples and best practices will help you refine your approach. Learn about the best stocks for covered calls and how to sell covered calls on platforms like Schwab and Fidelity.
Advanced Concepts and Risks
Understand the advanced concepts and risks associated with covered calls. Learn what happens when a covered call hits the strike price before expiration, the potential risks, and how to manage them. Discover the payoff diagrams and scenarios when a covered call expires in the money.
FAQ
What is a covered call?
A covered call is an options strategy where an investor holds a long position in a stock and sells call options on the same stock to generate additional income.
How do I sell a covered call?
To sell a covered call, you need to own the underlying stock, choose a strike price and expiration date, and sell the call option through your brokerage platform.
What are the risks of writing covered calls?
The primary risk of writing covered calls is that you may be obligated to sell your stock at the strike price if the option is exercised. This could result in missed opportunities if the stock price rises significantly above the strike price.