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

Name: Writing covered calls protects the writer from losses if the price of the underlying stock declines.
Brand: Quizplus
Rating: 4.7 (33 reviews)

Question

Quizplus · Accepted Answer

Writing covered calls provides limited protection against small declines in the stock price due to the premium received, but it does not protect against significant losses if the stock price falls substantially.

Writing Covered Calls Protects the Writer from Losses If the Price