Covered option in economics and finance

Hello everyone! Welcome to today's lesson on covered options. In the world of finance, options are a popular instrument used to hedge risks and speculate on price movements. A covered option, also known as a covered call, is a strategy where an investor holds a long position in an asset and sells a call option on that same asset. This strategy is often employed to generate income or protect against potential losses. Let's dive deeper into its mechanics and benefits.