Give me example of covered call in stock

A covered call is a strategy where an investor holds a stock and sells a call option on that stock, with the strike price of the option equal to or higher than the current market price of the stock. Here's an example: **Example:** * Investor holds 100 shares of XYZ Company (XYZ) at a current market price of $50 per share. * XYZ is a stable, dividend-paying company with a history of consistent earnings. * Investor sells 1 XYZ $55 call option for October expiration, receiving $1 per share. * If the price of XYZ remains below $55 by October, the option will expire worthless, and the investor keeps the $1 per share received from the option sale. * If the price of XYZ rises above $55 by October, the option buyer has the right to buy 100 shares of XYZ at $55 per share, and the investor must fulfill this obligation if they do not already own sufficient shares to cover the option. * In this case, the investor would need to purchase 100 shares at $55 per share, costing $5,500, and then sell those shares at the higher market price, potentially earning a profit. **Key Points:** * Covered call strategy involves holding the underlying stock and selling a call option on that stock. * The strike price of the option is equal to or higher than the current market price of the stock. * If the stock price remains below the strike price, the option expires worthless, and the investor keeps the premium received from the option sale. * If the stock price rises above the strike price, the investor must fulfill the option obligation, potentially earning a profit if they sell the stock at a higher price. In this example, the investor in ULTY ETF could be using a covered call strategy, where they hold the underlying tech stocks and sell call options to generate income. However, this strategy also exposes them to potential losses if the stock prices decline.