Covered Call Scanner

A covered call is an options strategy where an investor holds a long position in a stock and sells (writes) a call option on the same stock. This generates income through premiums from the sold call options.

In a covered call, you buy shares of a stock and simultaneously sell a call option on those shares. If the stock price rises above the strike price of the call option, the stock may be "called away," and you sell the shares at that price. If the stock stays below the strike price, you keep both the stock and the premium received from the option sale.

The expiration date depends on your goals. Short-term expirations (weekly or monthly) provide quicker income but may involve more frequent management. Longer expiration dates offer larger premiums but tie up capital for a longer period.

You can sell multiple call options on the same stock, but you need to own enough shares to cover each contract. One options contract typically represents 100 shares of the underlying stock.

If the stock price remains below the strike price, the option expires worthless. You keep the premium income, and your stock position is unaffected, allowing you to potentially sell another call option.