SIE practice questionmediumOptions - Strategies
Which options strategy involves selling call options on stock you already own?
- ACovered call✓ Correct answer
- BNaked call
- CProtective put
- DStraddle
Explanation
Why A — Covered call
Covered calls sell calls against owned stock, limiting upside but earning premium. Naked calls sell without owning the stock; protective puts buy puts; straddles combine calls and puts.
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