Covered call ( secured call ) (from the English. Covered call ) - an investment strategy in which the investor sells (writes out) a call option on assets that he owns or which will be acquired simultaneously with the sale of the option.
This strategy reduces the risk of owning assets, since the drop in the value of assets is partially offset by the premium received from the sale of the option. At the same time, a covered call limits the potential income , since if the price of the asset exceeds the price specified in the option, the investor will be forced to sell the assets at the price fixed in the option.