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Why would an investor sell a covered call?

Updated: 8/20/2019
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10y ago

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An investor will sell a covered call if the price of the stock or contract is losing its value. This way, the option on the terms of the contract will not be a zero loss, but close to something that is in the benefit to the investor. The purpose of buying a covered call is to make money with the intention of the stock climbing rather than decreasing.

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Q: Why would an investor sell a covered call?
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