top of page
Slovník pojmů a strategií
pro obchodování opcí
Kompletní slovník opcí: strategie, pojmy, řecká písmena a postupy pro výpis opcí. Přehledně, srozumitelně, pro začátečníky i pokročilé. Naučte se obchodovat opce efektivně.
Strategy
Beginner, Advanced
Covered Call
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.
Detail
A Covered Call is an options strategy where an investor owns 100 shares of stock and simultaneously sells a call option on those shares. The premium received from the option sale provides additional income and partially offsets small declines in the stock price.
• If the stock price stays below the strike price, the option expires worthless, and the trader keeps both the premium and the shares.
• If the stock price rises above the strike price, the shares will be assigned (sold at the strike price). In this case, the trader still keeps the premium, effectively receiving a total return of strike price + premium.
This strategy is conservative and well-suited for investors who want to generate regular income from stocks they already own, while being prepared to sell them at a predefined price.
A Covered Call is commonly used by investors who already hold shares and want to generate additional income while limiting downside risk. The sale of a call option provides an immediate premium, which either reduces the effective cost of holding the stock or enhances the overall return.
• If the stock remains below the strike price, the option expires worthless, and the trader keeps both the premium and the shares.
• If the stock exceeds the strike price, the trader must sell the shares at that level. While this limits upside potential, the investor still benefits from strike price + premium, ensuring a profit.
💡 Why use a Covered Call?
• Income generation: The premium collected provides steady cash flow.
• Limited risk: The downside is partially offset by the premium, reducing overall exposure.
• Reduced volatility impact: The strategy works best in neutral or mildly bullish markets.
Key limitation: The maximum profit is strike price + premium, meaning that if the stock surges significantly, the investor gains less than if they held the shares outright. This makes Covered Calls ideal for stable markets where extreme growth is unlikely.
Optimal conditions
Suitable if we own 100 shares and expect the share price to stagnate or increase slightly. Ideal for calm and slightly growing markets, or if we are willing to sell the shares at a higher price (strike). It also works well on dividend stocks as additional income to the dividend.
Max profit
Premium for the call option + difference between the purchase price of the stock and the strike (if the stock rises to the strike). Max profit limited by the strike price + premium.
Max loss
Same as holding the stock minus the premium received. If the stock falls to zero, the maximum loss is the purchase price of the stock - the premium. The premium helps to partially cover the decline, but does not replace the stop loss.
Risks
Limited profit if the stock rises sharply (we have to sell at the strike). Full exposure to a decline in the stock price (just like a regular stock). Risk of being assigned and losing the shares if the stock price exceeds the strike.
Greeks
Delta corresponds to the combination of the stock (delta 1) and the short call option (negative delta), which reduces the total delta below 1.
Theta works in favor of the option writer (time decay of the premium).
Vega: a decrease in volatility reduces the value of the option, which is beneficial to the writer.
Gamma low — a strategy stable with small price movements.
Variations
Buy-Write – Buying a stock and simultaneously selling a call option on it. This is the most common way to initiate a Covered Call position.
Covered Call + Dividend Capture – Selling a call option on a dividend-paying stock to collect both the dividend and the option premium. However, if the stock is assigned before the ex-dividend date (early exercise), the trader may not receive the dividend.
Rolling Covered Call – Rolling the short call to a new expiration or strike price, typically to extend the duration of the trade, collect more premium, or adjust the risk profile.
Cash-Secured Put (as an alternative) – Instead of directly buying the stock and selling a call, an investor can sell a put option with enough cash reserved to purchase the stock if assigned, generating income through the put premium before ownership.
Usage example
We own 100 shares of AAPL purchased at $150. We write a call option with a strike price of $160 for a premium of $3 (=$300). If AAPL stays below $160, we keep the premium and can extend the strategy. If AAPL rises to $165, we must sell the shares for $160, but we still realize a profit of $10 per share plus the premium ($1,300 total).
If AAPL falls to $140, we take the loss on the shares but at least have $300 in premium as partial compensation.
DTE
Covered Calls are typically written with around 45 days to expiration (DTE), depending on the investor’s goal—short-term income or a longer-term strategy.
• Shorter DTE (e.g., weekly options) accelerate time decay (Theta) but increase the likelihood of early assignment, especially if the strike price is near the money (ATM), where the option still holds extrinsic value.
• Longer DTE (e.g., monthly options) offer a higher premium but experience slower time decay and allow more time for the underlying stock price to rise before expiration.
IV (implied volatility)
Higher IV = higher premium for the listing, which is advantageous. But too high an IV can mean that the stock is expected to move sharply, which can increase the risk of assignment or loss on the stock.
Premium
The premium received for writing a call option. It serves as additional income, partial coverage against a decline in the stock.
Margin
No, if we own 100 shares (it is a covered strategy).
Yes, if we do not own any shares (in which case it is no longer a Covered Call, but a Naked Call!).
Poznámky
Covered Call is a conservative strategy for investors who want to generate income on their stocks. The disadvantage is limited profit and the need to sell the stock upon assignment. It is often combined with a dividend strategy. It also works on ETFs (e.g. SPY, QQQ). Be careful of the tax implications when selling a stock.
Tags
low risk, premium income, covered strategy, hedging, risk management, long stock, covered call
bottom of page