Covered Writer

Covered writers have a hand in options trading without taking on all of the risk. They sell options on securities that they already own. This way, when the purchaser of the option is ready to exercise it, they already own the security and don’t need to go buy it at whatever random price it may be. They make money by charging premiums that people are willing to pay, because they're confident in what they think a stock will do. Otherwise, they wouldn’t buy the option in the first place.