22 Nov 2019 A covered call can reduce your risk and provide income, but it comes at a price. thinking about writing covered calls against some of the stocks in my portfolio. you might sell a call option that allows another investor to buy your shares at In a nutshell, covered calls can be a great income strategy, but A covered call is a financial market transaction in which the seller of call options owns the If XYZ trades at $33 and $35 calls are priced at $1, then A can purchase 100 shares of XYZ for $3300 and write/sell won't make any gains within the time frame of the option; this is best done by writing an out-of-the- money option. 15 Jul 2019 You buy (or already own) a stock, then sell call options against the shares. S&P 500 stocks, but too few take advantage of this covered call strategy. The GLDI is a great covered call ETF option for investors looking to profit