What is sell a covered call?

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1259654

2026-03-20 12:51

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A covered call means that you own the underlying stock on the option you are selling. Say you own 100 shares of Apple computer. You sell ONE call option which allows the buyer of the option to purchase the underlying 1oo shares of stock at the strike price. If the contract matures, you can then deliver the stock to the option buyer.

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