Call overwriting strategies have been developed to outperform equities in times of falling or relatively stable market conditions. These strategies are also known as buy write strategies or covered call writing strategies.

The basic principle of this type of product is for the owner of an equity portfolio (such as a fund manager) to sell out of the money call options (i.e. writing call options, hence the name of the strategy) on that portfolio to generate an additional revenue from the option premiums while retaining ownership of the underlying. In the same way “buy write” describe the process of purchasing the underlying shares (“buy”) and selling the call option on them (“write”).