When a trader sells a covered call, instead of paying a premium, they receive the premium. However, the call can be exercised at the will of the owner (buyer) of the call option at any time up until expiration. If the call is in the money2 (ITM) on or before expiration, the likelihood that the owner of the option will exercise their right to buy the underlying at the strike price increases. If the owner exercises the option, the trader will be required to deliver the stock. Additionally, the short (sold) option can be assigned at any time regardless of the ITM or out-of-the-money3 amount.