The sale of a call option on a stock the seller already owns is referred to as

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Selling a call option on a stock that the seller already owns is known as a covered call. This strategy is often used by investors to generate income from their stock holdings, as the seller is essentially betting that the stock price will not rise above the strike price of the call option. This strategy is considered to be less risky compared to selling naked calls because of the underlying stock ownership.

The Sale of a Call Option on a Stock the Seller