Covered Call

Psychology:

The covered call strategy involves buying shares of the underlying asset and selling call option contracts.Covered calls can also be a way to take advantage of a stock's increase in price by selling the out-of-the-money call and then collecting that premium plus the stock price increase.

Risk / Reward:

Maximum Loss: Unlimited as the underlying asset’s share price goes down.

Maximum Gain: Limited to the total premium obtained from selling the call option contract (plus the appreciation in stock price).