Covered call is an option strategy in which the option writer writes a call option on an asset he already owns. It is called a covered call because the potential obligation under the call option is covered by ownership in the underlying stock.
Define covered option. covered option synonyms, covered option pronunciation, covered option translation, English dictionary definition of covered option. Noun 1. covered option - a put or call option backed by the shares underlying the option option - t
Definition of Covered call in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Covered call? Meaning of Covered call as a finance term. What does Covered call mean in finance?
Define covered. covered synonyms, covered pronunciation, covered translation, English dictionary definition of covered. v. cov·ered , cov·er·ing , cov·ers v. tr. 1. a. To place something upon or over, so as to protect or conceal: covered the boat wit
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It is smart for a variety of ways, but first let's explain the definition and provide some examples of writing covered calls. If you understand that call options give the holder the right to buy a stock at a certain price by a certain date, it's time to think about the other side ...
A definition of the business term "covered option" is presented. The term is a process in which an investor underwrites a call owns the stock in question. The process enables the investor to be covered against any losses necessitated by having to buy the stock in the market. Furthermore,...
A qualified covered call is a covered call with more than 30 days to expiration at the time it is written and a strike price that is not "deep in the money." The definition of "deep in the money" varies by the stock price and by the time to expiration of the sold call. Possible ...
Definition A covered call is a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. The term covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security...
Definition A covered call ETF is an exchange-traded fund that uses covered calls to generate income. Selling covered calls is a classic options strategy for investors who want steady income from their investments with some protection against risk. One drawback of this strategy is the effort and ...