Buying Covered Calls

But don't you have to pay for the long call?? Payment is required there too...

 

the proceeds from the short stock pays for long call

 

What do you mean?

You pay it as cash in leui, and the broker handles it.

 

Two transactions instead of one.

 

The easy explanation is "try it". Short a stock 1 day before ex-dividend date and hold it, see what happens to the short stock price and your equity.
https://money.stackexchange.com/que...stock-before-the-ex-div-date-to-make-a-profit

 

You don't get the proceeds from the short sale of the stock it is separated for margin purposes.