Covered calls generate premium income from stocks you already own. Learn how the strategy works (with a step-by-step example) and understand the risks and downsides before you start. What is a covered ...

A call option contract offers its buyer and seller two different roles. The call buyer pays a fee up front for the right to buy shares at a set price, called the strike price, before the contract ...

Covered calls and dividend stocks are a natural pairing. One provides a steady stream of income through payouts, while the other adds a layer of premium on top. When combined, the two can produce a ...