what is covered call in stock market?

A covered call is a trading strategy in which an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate income. The asset is said to be "covered" because the investor owns it, and therefore has the ability to deliver it if the call option is exercised.

For example, if an investor owns 100 shares of stock X and writes one call option on that stock with a strike price of $50 and an expiration date one month in the future, they are said to be "covered." If the stock price exceeds $50 at expiration, the call option buyer may exercise their right to buy the stock at $50, and the investor will be obligated to sell the shares to them.

The covered call strategy can be used as a way to generate income from a stock that an investor is bullish on, but does not expect to make significant price gains in the short term. By writing the call option, the investor is able to collect the premium from the option sale, which can offset some of the risk of holding the stock