Now, covered call is only safer because you receive some cash upfront from selling the call options which either goes towards offsetting any losses sustained by the stock or goes into your pocket as income. As such, the protection is really quite limited. On the plus side, you get additional profit if the stock should remain sideways or slightly upwards but below the strike price of the call options sold. On the minus side, the maximum profit you can ever get for the stock is up to the strike price of the call options sold exceeding which, the buyer of your call options would have the option to buy your stocks at the strike price even though the price of the stock has moved higher than the strike price.
So, there are pros and there are cons... suggest further reading in the resource below:
You should not be trading options since you do not understand them
To answer your question - Yes a covered call is safer than buying the stock However, a "covered" call lis one where the seller sells the call and deposits the stock to cover the call
So you buy stock, then you write a call - it cost you full market price to buy the stock less what you receive from selling the call
What can you loose- everything you invested if the price of the stock drops to zero
If you write "a covered call" which means you sell the call and deposits stock against it,
You should do some studying before you try dealing in options
depends on whether you want to sell the stock, if the call is excercised, you lose the stock and pay tax
depends on whether you want to sell the stock, if the call is excercised, you lose the stock and pay tax
