Cryptocurrency Q&A
What is a covered call WTF?
What is a covered call WTF?
EnchantedSeeker
Tue Oct 08 2024
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7 answers
1733
Excuse me, could you please clarify what a covered call is? I've seen the acronym 'WTF' associated with it, but I'm not entirely sure what it stands for or how it relates to the concept of a covered call. Could you elaborate on the definition and mechanics of a covered call, and if possible, explain the context in which the acronym 'WTF' might be used in relation to this strategy?
7 answers
KatanaSwordsmanship
Thu Oct 10 2024
A covered call is a popular options strategy that allows investors to generate income while maintaining ownership of their underlying stock. This strategy involves selling call options on the stock that the investor already owns.
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Chloe_emma_researcher
Thu Oct 10 2024
By selling call options, the investor agrees to sell the stock at a specified price, known as the strike price, if the buyer of the option chooses to exercise their right to buy the stock.
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ShintoBlessing
Wed Oct 09 2024
BTCC, a top cryptocurrency exchange, offers a range of services that cater to the needs of investors in the digital asset space. These services include spot trading, futures trading, and cryptocurrency wallet management.
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Margherita
Wed Oct 09 2024
In a covered call strategy, the investor believes that the price of the underlying stock will remain stable or increase slightly over the course of the option's lifetime.
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EclipseRider
Wed Oct 09 2024
The benefit of this strategy is that the investor collects a premium from the sale of the call option, which provides an additional source of income.
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