Buying Covered Calls May 2026

: You generate instant income (the premium), but you cap your potential profit if the stock price skyrockets above the strike price.

: You use this when you expect the stock to stay flat or rise only slightly. buying covered calls

You can either sell calls against stock you already own or execute a (buying stock and selling the call simultaneously). Covered Calls Strategy: Generate Income and Manage Risk : You generate instant income (the premium), but

: 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 buying covered calls