Buying Covered Calls Apr 2026

You can either sell calls against stock you already own or execute a (buying stock and selling the call simultaneously). Covered Calls Strategy: Generate Income and Manage Risk

: The Option Premium is yours to keep regardless of whether the stock is "called away" or the option expires worthless. 2. Steps to Buy (Set Up) a Covered Call buying covered calls

: You use this when you expect the stock to stay flat or rise only slightly. You can either sell calls against stock you

To execute this, you must own at least of the underlying stock for every 1 call option contract you sell. buying covered calls