Bonus: Swagbucks is currently giving people $5 for free just for signing up! So sign up today! Peter, I have a question:I own the ABC at 25.00 and I sold the in-the-money one call option for May 21, 2011 for 1.4 and earned a premium of 140. Assume it will be traidng at 28.00 by May 21, what will I have to do, apart from selling my stock at 25? Is there anything that I need to do? Reply will be appreciated. Thanks Covered calls, one of the most common and popular option strategies, can be a great way to generate income in a flat or mildly uptrending market. A covered call is when you own the underlying stock and then sell someone the right to buy the stock if the strike price is reached before expiration. So basically these internet marketers put together a hoax video trying to make it seem like they’ve managed to build a system that will be able to allow you to make money from all of your trades. Obviously if you come across a system like this then it’s going to make you really interested & probably want to try it out – after all who wouldn’t want more money! That’s exactly what they prey on – they prey on you deciding to try it out because as soon as you’ve deposited money over the broker they’ll get paid a nice big commission.