Strategy - COVERED CALL - long stock, sell call (details below)

• bullish
• bearish
• neutral
  • expect prices to fluctuate in very narrow range
  • prices might flutuate in a broader range
  • moderately certain that prices will not flutuate much
  • short-term weakness but longer term rally
  • hold stock but expect no movement
• volatile

Strategy Implementation
Call options are sold. The number of call options sold will be determined by the investor's market view and the size of the stock holding.

Upside Potential
Limited - by selling calls, the investor is writing off the potential prfit of the stock position. Maximum profit is the strike minus the market price plus the premium received.

Downside Risk
Large: Similar to that incurred with ordinary stock ownership, only off-set partially by the (fixed) option premium received. Main loss could be the opportunity loss if the market rises strongly.

Margin
Always required