Why covered calls decrease volatility?

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Hi everyone,
Hoping someone can please help out…
page 54 alternative investments book, it says that investors can enhance yield through writing covered calls while decreasing volatility…
can someone please expalin why volatility decreases? is it simply because of the upper limit cap placed by selling the calls? Thanks.

 

[S2000magician]

The returns on a short call have a (strong) negative correlation with the returns on the underlying.

 

[cpk123]

in addition - you sold a call on the underlying. with that you received some premium - you can offset some losses elsewhere with that premium. So your earnings have become more stable.

 

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Thanks guys!

 

[S2000magician]

My pleasure.