Covered Call

### What is a Covered Call? This is probably the most widely used options strategy among long-term stock holders, and for good reason — you already own the stock, so why not get paid for the possibility that you'll sell it higher? You sell an OTM call against your existing 100 shares and pocket the premium. The trade-off is real though: if the stock rips past your strike, you're capped and give up gains you'd otherwise have had just holding the stock. This isn't a "free money" strategy — it's an income strategy with a real opportunity cost.