Covered call
Owning at least 100 shares and selling a call against them. The premium adds income and cushions small declines; in exchange, upside beyond the strike is given away until expiration.
A covered call converts uncertain upside into certain premium. Its expiration payoff equals the stock’s, capped above the strike and shifted up by the premium — which means it keeps essentially all of the downside minus that cushion.
The honest framing: it is a bet that the stock will not rally far, made by someone content to sell at the strike. Writers unhappy when assignment actually happens picked the wrong strike or the wrong strategy.
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