Long Futures with a Short Call (Covered Call)

What this video covers

• Why the covered call collects premium upfront and how that cash flow differs from every bought-option strategy in the unit
• The four exact payoff scenarios: capped upside above the strike, extra return in flat-to-slightly-up markets, cushioned small declines, and still-net-loss large declines
• Why "partial downside protection" is the only accurate label, and why "fully hedged" or "downside protected" are trap answers
• The mandatory exam label: covered call, not synthetic short put, even when both appear as choices
• How margin treatment flips between bought options (none posted, premium-only denominator) and covered calls (margined long future, margin-based denominator)
• Why return on equity for a covered call uses a margin denominator, not the premium, and how the exam tests this exact mistake
• The true meaning of "covered": the long future backs the short call, but margin is not waived