What is a covered call?

A covered call is an options strategy where an investor holds a long position in an asset and sells call options on that same asset, collecting premiums for income generation.

What are the risks of a covered call?

The main risk is that the underlying stock could rise significantly above the strike price, and you would be required to sell the stock at the strike price, missing out on additional gains. Additionally, the strategy limits upside potential but reduces downside risk by providing premium income.

When is the best time to use a covered call?

A covered call is most effective when you expect the underlying asset to remain flat or appreciate modestly. It is ideal for generating additional income in a neutral to slightly bullish market.

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What is COVERED CALL?

CREDIT DEFAULT SWAP (CDS)

Credit default swap (CDS) is a financial derivative that allows an investor to 'swap' or offset their credit risk with that of another investor.

TradeReply is an advanced analytics suite designed for crypto and stock traders to input historical trading data and leverage powerful visuals, graphs, and metrics to optimize and develop effective trade strategies with real-time insights.

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CREDIT DEFAULT SWAP (CDS)

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