• Stock Investing Blog
• Trading Options
• Forex Trading
• Options Trading
• Stock Market Basics
• Fund Information
• Investor Definitions
• Stock Market Forums

• Stephen Cooper
• Easyonlinepaydayloan

Home >> Stock FAQ >> What is a covered call?

What is a covered call?

Question: "What is a covered call?"

Answer: "An investor has a stock at a profit. Then she sells a call option at a strike price above the current price. If the stock hits the strike price, she sells her stake for a profit. This is a covered call."