Buy-Write

A strategy consisting of buying stocks and writing covered call options on them to generate maximum current income from option premiums and dividends.



If the call is exercised, the investor may have to sell the stock at below market price. But because they already own the stock, the risk is limited. This is also known as a covered call.



Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.

Come One, Come All - Covered Calls - A good place to start with options is writing these contracts against the shares you already own.

Using LEAPs As A Surrogate for Owning the Underlying - Check out some of the advantages of using these types of contracts instead of stock as the underlying for your covered calls.

Going Long on Calls - Learn how to buy calls and then sell or exercise them to earn a profit.

Naked Call Writing - Learn about this aggressive trading strategy that can be used to generate income as part of a diversified portfolio.
Related Terms

Call Option

Covered Call

Option

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