Money Viking Cartoon III, Covered Call Options

I know this ones sounds complicated, but Jerry has been making some extra money on these options lately. Let us break it down. A covered call is basically a contract between you as a stock owner and a potential buyer. The buyer has purchased from you a call option. If the stock reaches a specific price on or before a specific date, they have the option to buy the stock from you at the strike price both of you agreed upon. The cool thing about these is that the buyer will pay you up front for the option.

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