Are Covered Calls Worth It in 2025?
Yes — if you want to generate income on stocks you already own, covered calls are a smart move.
You earn premium upfront, which reduces your breakeven. But you cap your upside if the stock rallies significantly. Covered calls are especially useful in flat or slowly rising markets, where price appreciation is limited.
They are popular among long-term holders of dividend-paying stocks or high-volatility tickers where premiums are generous.
📊 Example Trade
TSLA @ $368
Strike: $380
Premium: $12.10
DTE: 30
👉 Run this in the calculator → https://bit.ly/tsla-call
✅ Pros of Covered Calls
Generate passive income
Reduce cost basis over time
Improve portfolio returns in sideways markets
⚠️ Risks
Opportunity cost if the stock skyrockets
Forced sale at the strike if assigned
Requires owning 100 shares per contract
🙋♀️ FAQ
Q: What happens if my stock goes way above the strike?
A: You miss out on gains above the strike, but still profit from the premium and appreciation up to that point.
Q: Can I sell another call after one expires?
A: Yes, this is called “rolling” or repeating the strategy month to month.
Q: Is this strategy safe for beginners?
A: Safer than many strategies since it involves owned shares, but it's not risk-free. Always model your trade.