The major disadvantage of writing covered call options is the ceiling on possible appreciation of the stock.

Name: The major disadvantage of writing covered call options is the ceiling on possible appreciation of the stock.
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Question

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Writing covered calls limits the upside potential of the stock because if the stock price rises above the strike price of the sold call options, the stock can be called away, capping the seller's profit at the strike price plus the premium received.

The Major Disadvantage of Writing Covered Call Options Is the Ceiling