Question

define covered call writing... be clear

Answer 1

A covered call is when a call option is written on a stock that is owned by the option writer.

For example, an investor owns 100 share of Stock X. If the investor writes a call option on 100 share of Stock X, this position is called a covered call.

Covered call can also be written on an index. An investor may own share of the underlying index in the form of an ETF, and call options can be written on the index.