Covered Call - Components
Write (sell to open) 1 contract of nearest out of the money or at the money call option for every 100 shares you own.
Buy 100 Shares + Sell 1 OTM / ATM Call
Covered Call - Expectation
Up or Stagnant
Covered Call - Risk / Reward
Maximum Profit: Limited
Maximum Loss: Unlimited
Covered Call - Breakeven Point
Initial Value of Short Call Options - Initial Value of underlying stock
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