Long call and covered call approaches both involve call options, but they serve very different purposes in a portfolio. A long call is typically a speculative strategy, allowing investors to profit ...

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

Combining options and stock positions can create unique investment exposure for investors. The practice of selling (writing) call options while also owning the underlying stock is known as selling ...