The results with covered call writing are better than without covered call writing when the stock performs poorly and better when the stock performs well.

Question

Quizplus · Accepted Answer

Covered call writing generally performs better when the stock performs poorly or remains flat, as it generates income through premiums. However, it may underperform when the stock performs well, as the upside potential is capped by the call option.

The Results with Covered Call Writing Are Better Than Without