Covered Call Strategy Using Machine Learning
Chainika Thakar
A covered call is used by an investor to make some small gain while holding the stock. Mostly the reason why a trader would want to create a covered call is because the trader is bullish on the underlying stock and wants to hold for long-term, but the stock doesn't pay any dividend. The stock is expected to go up over a period of next 6 months, and in the meantime, you would want to use this stock as collateral and sell some call and pocket the premium.
But there is a risk to the strategy, that.