Covered Calls is a financial market transaction in which the call options vendor owns the corresponding amount for the underlying instrument, such as shares or other securities. If a trader buys the primary tool at the same time as the trader sells the call, the strategy is often called a "buy and write" strategy. In balance, the strategy has the same rewards as writing a mode option. Is said to be the long position in the instrument on which it is based to provide a "cover" where the stock can be delivered to the buyer of the call if the buyer decides to exercise. write (i.e. sell) a call generates income in the form of premium payment by buyer option. If the share price is still stable or increasing, then the writer will be able to maintain that income as a profit, although the profit may be higher if no call is written. The risk of ownership of shares remains. If the share price falls, the net position is likely to lose money. Since the payoff balance on the covered call position is the same as a short mode position, the price (or premium) should be the same premium as a short or bare mode.