The covered call trade strategy (aka buy-write) involves buying the stock and selling one call option against every one hundred shares that is owned. Learning to trade the covered call is not very difficult. Take a look at Microsoft stock ticker $MSFT as an example of buying and selling a covered call. If we...
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A covered call is an option combination trade which involves buying the stock, and selling a call against that stock. One purpose of a covered call is to earn extra income and enhance the return on the stock. The downside to a covered call is that your profit potential is limited. The good thing about a covered call is...
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