MONEY GLOBE XOptions Strategies & Greeks · Lesson 3
Covered calls and protective puts
Combining options with what you own
Professional - Gold & Platinum
In this lesson
Build covered calls and protective puts, and calculate their break-even, maximum profit and maximum loss.
Key takeaways
- Covered call = own the asset + sell a call: income, upside capped at the strike.
- Covered call max profit = (strike − entry) + premium; break-even = entry − premium.
- Protective put = own the asset + buy a put: losses capped below the strike.
- Protective put max loss = (entry − strike) + premium; break-even = entry + premium.
Watch this lesson with Tessa. The full video, worked example, calculator, quiz and Ask Tessa are part of Money Globe X Gold and Platinum. Create your account to start learning.
Next lesson: Vertical spreads
Educational information only - not financial advice.
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