# Covered Call

> Are you willing to hand over the shares at the call strike - even if they keep running afterwards?

| Property | Value |
| --- | --- |
| Market phase | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift |
| Driver | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way |
| Direction | neutral to mildly bullish |
| Max profit | (the call strike minus your cost basis) plus the credit received |
| Max loss | your cost basis minus the credit received |
| Risk defined | Yes |
| Legs | +100 shares; -1 Call @Kc |
| Approval level | 1 (Covered positions (covered call, protective put) - the lowest approval tier) |
| Experience | Beginner |

## Formulas

```text
Break-even: S0 - C
Max profit: (Kc - S0) + C
Max loss: S0 - C
```

## Legs

1. +100 shares
2. -1 Call @Kc

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/covered-call)