So I was trying to figure out how this is different than a PUT...
And it looks like a covered call means you're the one actually selling the option to someone else?
So weird.
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And it looks like a covered call means you're the one actually selling the option to someone else?
So weird.
Well you can also sell a put (aka selling cash covered put).
The difference you are looking for is sell/buy. Sell you are under contract and buy you have the option.
With selling a put, you don’t have the stock but you provide the cash (it gets locked) in case the buyer wants to sell at the strike price.