Online Options Trading - The Intricacies of a Covered Call

One of the easiest trades for a beginner options trader is the Covered Call (sometimes called a buy-write transaction). Trading a Covered Call takes the lowest level of authorization (level 1) and is easy to obtain from your brokerage house. 

What is a Covered Call?

In it simplest terms, it is where you own some stock and sell an option to someone else to buy that stock at a specified strike price to generate some income.

Share Trading Strategies

There are a range of public equity markets, also known as stock markets, operating around the world. The London Stock Exchange (LSE) is among the best known and oldest; there are others in major financial centres in Germany, France, the Netherlands, the USA, China and Japan as well as smaller ones in other regions.

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Share trading involves the buying and selling of company shares. The number of shares that you can buy normally depends on your investment capital and the share price at the time of purchasing.