Sell your first covered call

A covered call is a call you sell against shares available to cover it.

Assignment sells those shares at the strike price, so accept that price before selling.

Sell a covered call only against shares available to cover it. The sample wheel already has calls on all its shares. This lesson's practice uses a separate one-contract example, not an extra sale against that wheel. In it, count the sample shares and calls, then compare two covered calls by their premium and expiration.

The stock here is SOFI at $15.42. The numbers are made-up sample data. They are an example and not a recommendation.