Cover Option Trading

06/04/2022 Financial & Legal Services

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Description

Covered Call Strategy can be used to generate extra income when a stock price is at or above its moving average. The premium generated through this sale is usually enough to cover the cost of the Premium paid when you purchase the stock. This strategy is for investors who are willing to retain their stock but seek additional income in a covered way. It will work particularly well if the investor already has a large stake on the company and does not want to leave it completely.

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