A strategy where a trader sells a call option while holding the underlying shares, aiming to generate income from the option premium while potentially selling the shares at the strike price.
Buying a put option as protection (insurance) against a decline in the price of a stock we own. It reduces loss if the stock falls below the strike price.
Complete Options Glossary: Strategies, Terms, Greek Letters, and Option Selling Techniques. Clear and easy to understand, for both beginners and advanced traders. Learn to trade options effectively.
