At best, writing a covered call allows a trader to generate income from an existing position and to obtain some downside protection. At worst ... There are a number of different ways to use this strategy. For instance, some traders buy a stock they consider oversold and simultaneously write a call option against that position.
|Title||:||The Option Trader's Guide to Probability, Volatility, and Timing|
|Publisher||:||John Wiley & Sons - 2002-10-22|