Buying Covered Calls -

: 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

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

: You generate instant income (the premium), but you cap your potential profit if the stock price skyrockets above the strike price. : The Option Premium is yours to keep