# Covered Call

*Derivatives & Options — Finicade finance glossary*

Owning a stock and selling a call option against it to pocket the premium as income. You keep the dividends and modest gains but cap your upside — a popular way to squeeze yield from a holding you're happy to part with at the strike.

**Related terms:** [Call Option](https://finicade.com/glossary/call-option), [Option Premium](https://finicade.com/glossary/premium), [Hedging](https://finicade.com/glossary/hedging)

**Taught in:** Hull Street — Trading Strategies with Options

Source: https://finicade.com/glossary/covered-call