covered call

well, if you sell far out of money call, the stock may not be called away, but how about if the stock drop, like now.

you only can make the primum value of the option which is normally 1% to 2%. but the stock could drop far more than that, like now, the S&P has droped 19.39%.

 

I should say limited profit and limited loss, because a stock can not drop below zero.