Finance

Define and Discuss on Covered Calls

Define and Discuss on Covered Calls

General purpose of this article is to Define and Discuss on Covered Calls. Here explain Covered Calls in portfolio finance perspective. A covered call could represent a rather conservative investment strategy that entails low risk along with low returns. There are several pros and cons of this nature of investment through the stockowner’s perspective. A covered call is contractual understanding between a stock owner and buyer. It gives the buyer the choice to get the shares of the underlying stock at the particular price, within confirmed time period.