Writing covered calls protects the writer from any losses if the price of the underlying stock declines.

Name: Writing covered calls protects the writer from any losses if the price of the underlying stock declines.
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Question

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Writing covered calls generates income through premiums but does not protect the writer from losses if the underlying stock declines; the loss on the stock can still exceed the premium received.

Writing Covered Calls Protects the Writer from Any Losses If