Verizon's Covered Call Strategy

313 Words2 Pages
In this strategy I used a covered call strategy. The covered call strategy basically is to hold an assets “stock” and write a call option with the same amount of the assets. This strategy is been used by investors who feel that the stock might increase in price after a period of time and seeking a short-term profit by selling the call option and collecting the premium. Also this strategy can be used if the investor feels like that the stock price will decrease and try to reduce his lost by collection premium from shorting a call option. However, in my situation I used the covered call to gain a short-term profit. The reason why I choice Verizon is that Verizon has a beta of 0.59 and with the market condition I don’t think that the price will