One reason for writing and selling a covered call
Option is
A) potential leverage
B) safety of principal
C) income received
D) liquidity

Question

Quizplus · Accepted Answer

The primary reason for writing and selling a covered call is to receive income in the form of the premium paid by the buyer. This can be an effective strategy for generating additional returns on a stock that you already own. Options trading can offer leverage, safety of principal, and liquidity, but these are not necessarily the primary reasons for selling a covered call.

One Reason for Writing and Selling a Covered Call