Covered call
Selling a call against shares you already own. You collect a premium as income; if the stock rises above the strike your shares are sold ("called away") at that price. A way to earn extra yield on holdings you'd be happy to trim.
Selling a call against shares you already own. You collect a premium as income; if the stock rises above the strike your shares are sold ("called away") at that price. A way to earn extra yield on holdings you'd be happy to trim.
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