Covered Call Writing

Writing covered calls is a popular strategy among newer option traders. One excellent reason is that it smooths the transition for a stock investor who is expanding his/her investing methods by entering into the world of options.

Covered call writing (CCW) is one method for reducing risk when owning stock, but it comes at the cost of limiting profits. Here are my thoughts on why someone may want to adopt this strategy. It includes both pros and cons.

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