Covered Call
Selling a call option against shares of the underlying stock you already own.
Explanation
A covered call generates income from the premium received while capping upside potential at the strike price. It is considered a conservative income strategy because the long stock position covers the obligation to deliver shares. The maximum risk is the stock declining to zero minus the premium collected.
Example
You own 100 shares of AAPL at $150. You sell a 160-strike call for $3.00, collecting $300 in premium. If AAPL stays below $160, you keep the shares and the premium.