Covered Call
Conservative income strategy using owned stock as collateral.
Beginner
Market Outlook
neutral
Family
income
Capital Req
high
Risk Profile
high
Strategy Overview
Key characteristics and when to use
Structure
Own Stock + Sell Call
Greek Profile
Slightly positive delta, positive theta, negative vega
Characteristics
CreditIncomeFoundation
Profit & Loss Formulas
Mathematical breakdown
Max Profit
Call premium + (Strike - Stock price if called away)
Max Loss
Stock price decline (partially offset by call premium)
Breakeven
Stock purchase price - call premium received