Can someone please explain all the possible risk of writing covered call option?
When we write call option is because we think the price will go down or will not reach certain level.
But even if the price goes up above strike price ...so what ?
is this cash settled or we have to deliver the stock we have?
When we write call option is because we think the price will go down or will not reach certain level.
But even if the price goes up above strike price ...so what ?
is this cash settled or we have to deliver the stock we have?