Options Glossary

Glossary: Covered Call Write

Last Updated: July 12, 2015


Covered Call Write

What Does Covered Call Write Mean in Options Trading?

A combination of stock and call option strategies where an equivalent number of stocks are purchased as that of the lot size of the call of the same stock written simultaneously. This is a very popular strategy for traders and investors alike, transitioning from stock trading to options trading. The risk in this strategy is similar to a short naked put of the same underlying stock.

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