Covered call is a short position in a call option where you simulteneously hold a long position of the same quantity in the base asset. As the name covered implies, you can cover the losses of the call position, originating from a surge in the base price, by selling the underlier at a higher price than it was bought for. Covered calls have limited profit potential and the maximum loss when the price of the base asset goes to zero.
See also covered put, naked call, naked put.
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European call struck at 10.000 with expiry in 30 days
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