Home/FAQ/What is a covered call strategy?

What is a covered call strategy?

Derivatives

A covered call involves holding a stock you already own and selling a call option against it, earning premium income while capping your potential upside if the stock rises sharply.

Get in Touch

Fill in your details and our team will reach out shortly.

    It’s considered a relatively conservative options strategy since the stock you hold “covers” the obligation if the option is exercised. It works best in flat or mildly bullish markets, generating extra income from stocks you’re comfortable holding regardless.

    Courses that build these skills

    Structured, practical programs taught by mentors who trade the markets themselves.

    Career Track

    4 Months · Beginner

    Diploma in Stock Market (DSM)

    The best starting point for beginners who want the stock market as a career — a full foundation in trading and investing.

    + Placement

    7 Months · With Placement

    Advance Diploma in Stock Market

    An advanced program with placement support across the stock market field and financial institutions.

    Certification

    1½ Months · Certification

    Technical Analysis

    In-depth charting and price action — learn to read and anticipate the next market direction.

    Certification

    1½ Months · Certification

    Fundamental Analysis

    Understand economy, industry and company analysis to value stocks for the long term.

    Certification

    1½ Months · 24+ Strategies

    Options & Futures

    Trade derivatives with confidence using over 24 strategies and disciplined risk management.

    Certification

    1½ Months · Certification

    Research Analysis

    Study past and present market data to analyse and select the right stocks for trading.

    Certification

    1½ Months · Certification

    Commodity Market

    Learn how commodity contracts are traded and how to participate in the commodity market.

    Still have a question? Talk to a counsellor.