# Covered Call

A *covered call* is a popular options strategy that involves owning (holding) the underlying asset and selling ("writing") call options on that same asset. When you sell a call option, you're giving someone the right, but not the obligation, to buy the underlying asset at a predetermined price (the strike price) within a certain time. In return, you receive a premium, which is essentially income for selling the option.

<figure><img src="https://www.investopedia.com/thmb/4zLj71oC_-U4YQAhb3-Um_4_VdU=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc():format(webp)/TheBasicsofCoveredCalls-e9b54e56a9c74812b728f6c4585e4192.jpg" alt=""><figcaption></figcaption></figure>


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