Covered Call Writing as a Supplemental Income Strategy

Selling call options can offer a third income stream when the strategy’s risks are understood.

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• Explains how covered call writing generates income by selling options on owned stocks, which can supplement other sources of income

• Describes key mechanics, risks and trade-offs, including limited upside, premium income and exposure to stock declines

• Compares strategies and teaches strike selection, timing and risk management to balance income generation with share retention