Covered Call
.To execute a covered call strategy, you need to mint a call option and then sell that option using the trade page. After which, you will only have the short token.
Ideal when you suspect no change or a slight increase in the underlying's price
A covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security.
When you sell the option, you collect a premium for it. In the case where the price of the asset is above the strike at expiry, you lose money; otherwise, you will collect the premium on top of the asset you own.
Your max profit during covered call is always the premium you got - when your asset price is below the strike at expiry. Your max loss is theoretically infinite.
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