Covered call

A covered call is an options trading strategy where a person sells (or "writes") a call option on a stock that they already own. When you write a call option, you are promising to sell the stock at a certain price, called the strike price, if someone buys the call option from you. When you write a call option on a stock you own, you are covered in case the stock price rises above the strike price and someone else wants to buy it from you. That's why it is called a "covered" call.