As a conservative investor,you can profit by selling a call on stock already owned,giving the buyer the right to purchase your shares at a fixed strike price for a time period.

Question

Quizplus · Accepted Answer

This is true. Selling a call option can generate income for the investor, especially in a market where the price of the stock is expected to remain stable or decrease slightly. However, there is a risk of losing the shares if the price rises above the strike price and the call option is exercised by the buyer.

As a Conservative Investor,you Can Profit by Selling a Call