hi,everyone: it's said that covered call is risk-less. i found it's not ,there is risk in the covered call let's suppose:i have 100100 usd ,i bought 100000 shares A stock,1 usd per share, pay 50 usd commission,then i write covered call,1000 contracts , strike price is 2 usd ,the call option is 0.05,i pay commssion 50 usd too. now ,in my account ,there is 100000 shares of A stock ,1000 contracts,there is no cash in my account . when the stock go up to 4 usd per share , and if the option go up to 10 usd ,what will happen?? a friend tell me ,excess liquidity will <0 ,you will be sold some of your stock or option ,to make excess liquidity >0,because the rule in many brokers is: Equity with Loan Value 400000 Cash Value 0 Stock and Bond Value 400000 Span Option Value 0 Net Liquidation Value 400000 Non Span Option Value -100000 Reg T Equity with Loan Value 390000 Initial Margin Requirement 400000 Available Funds 0 Maintenance Margin Requirement 400000 Excess Liquidity -10000 in this case ,brokers will sell some of your stocks or options to make excess liquitity >0 if this is truth, the covered call is un--riskless!!