Define and Discuss on Covered Calls

General purpose of this article is to Define and Discuss on Covered Calls. Here explain Covered Calls in portfolio finance perspective. A covered call could represent a rather conservative investment strategy that entails low risk along with low returns. There are several pros and cons of this nature of investment through the stockowner’s perspective. A covered call is contractual understanding between a stock owner and buyer. It gives the buyer the choice to get the shares of the underlying stock at the particular price, within confirmed time period.