Covered Calls — improving the odds of a modest profit

Mainstream investors buy assets they think will go up.  If the asset price stays the same or goes down the investor gets no profit or a loss.   Covered calls are a way for investors to show a modest profit if:
  1. The asset goes up in price
  2. The asset price stays the same
  3. The asset price drops a relatively small amount

One of the catches (and there are always at least one), is that the investor gives up some upside.  

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