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StillInSchool,As a covered call writer you can't sell your shares until the expiry date of the contract.It's similar to Property. If you rent the property to the tenant then you get the rent, but when you sale the property then you don't get the rent which is equivalent to the premium of shares renting.If you write out-of-the-money call options then if your options exercise you will still benefit from it but limited to the exercise price.The best book to learn and understand this strategy that I found is 'The Secret of Writing Options' by Louise Bedford.
StillInSchool,
As a covered call writer you can't sell your shares until the expiry date of the contract.
It's similar to Property. If you rent the property to the tenant then you get the rent, but when you sale the property then you don't get the rent which is equivalent to the premium of shares renting.
If you write out-of-the-money call options then if your options exercise you will still benefit from it but limited to the exercise price.
The best book to learn and understand this strategy that I found is 'The Secret of Writing Options' by Louise Bedford.
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