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Trading rulings
Are covered calls halal?
Answered by the ShariaQuant team
No. Writing a covered call means selling an option, and an option sells a bare right to buy at a fixed price rather than an asset, which is not something Islamic law lets you sell. Owning the shares or coins underneath does not change what the premium pays for. The International Islamic Fiqh Academy and AAOIFI both rule the options contract itself impermissible, so the ruling reaches the person writing it as much as the person buying it.
Every ruling on options, with sourcesThis is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.