Hello! A covered call is an options strategy that involves both stock and options. It is used to generate income from an existing stock position by selling call options against the stock. The investor receives a premium for selling the option, but also gives up some of the upside potential of the stock if it rises above the strike price of the option. The investor also has some downside protection if the stock falls below the strike price, as they will still own the underlying stock. In summary, a covered call is a way to generate income from an existing stock position while limiting downside risk.