Money on the Table

What Is a Covered Call Strategy?

A covered call is an options income strategy where an investor who owns shares of a stock sells (writes) call options against those shares. The premium received from selling the call option generates immediate cash income, regardless of what happens to the stock price.

How Does a UGRO Covered Call Work?

If you own 1000 shares of UGRO, you can sell 10 call option contracts (each contract represents 100 shares). You collect the option premium immediately. In return, you agree to sell your shares at the strike price if the stock rises above it before expiration.

Three Approaches to Covered Calls

• Aggressive (Out-of-the-Money): Higher potential profit if the stock rises, but less downside protection from the smaller premium collected.
• Neutral (At-the-Money): Balanced approach with the highest time premium, offering good income and moderate protection.
• Conservative (In-the-Money): Maximum downside protection from the large premium, but you agree to sell shares below the current price.

Why Use PowerOptions for Covered Call Analysis?

PowerOptions provides patented SmartSearchXL® technology that analyzes over 1,900,000 options across 5,500+ optionable stocks to find the highest-return covered call opportunities. Our tools calculate potential profit, downside protection, and probability of assignment — giving you the data you need to make informed decisions.