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Covered Call Strategy

A Covered Call is an options strategy where you own a stock and sell a call option on it. You earn a premium from the option, which gives extra income u2014 but if the stock goes above the strike price, you might have to sell it. Itu2019s great for generating steady returns in sideways or mildly bullish markets.

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Covered Call Strategy

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  1. Covered Call Strategy For more info: https://navia.co.in/blog/options-strategies-negative-to-side ways-markets/#1-covered-call-strategy

  2. What is a Covered Call? Objective: Generate Income** ● Best used in neutral or slightly bearish markets. ● Combines stock ownership with an options strategy ● to earn income. Ideal for conservative investors looking to boost ● For more info: returns. https://navia.co.in/blog/options-strategies-negative-to-sideways -markets/#1-covered-call-strategy

  3. How It Works Hold the stock (e.g., you own shares of a ● company). Sell a call option at a strike price above ● current market value. Earn a premium upfront for selling the option. ● ● For more info: https://navia.co.in/blog/options-strategies-negative-to-sideway s-markets/#1-covered-call-strategy

  4. Profit & Risk ● Profit Potential: Limited to the premium received. ● Risk: Stock may fall below your purchase price. ● However, losses are partially cushioned by the premium collected. For more info: https://navia.co.in/blog/options-strategies-negative-to-sidewa ys-markets/#1-covered-call-strategy

  5. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer For more info: https://navia.co.in/blog/options-strategies-negative-to-side ways-markets/#1-covered-call-strategy

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