Covered


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Related to Covered: Covered call

Covered

A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security. That is, a short call is covered if the underlying stock is owned, and a short put is covered (for margin purposes) if the underlying stock is also short in the account. In addition, a short call is covered if the account is also long another call on the same security, with a striking price equal to or less than the striking price of the short call. A short put is covered if there is also a long put in the account with a striking price equal to or greater than the striking price of the short put.
References in classic literature ?
As soon as the roc sees you he will fly away from fear, but you must walk on till you come to a castle covered with plates of gold, studded with jewels.
The horses were almost famished; for the herbage was covered by the deep snow, so that they had nothing to subsist upon but scanty wisps of the dry bunch grass which peered above the surface, and the small branches and twigs of frozen willows and wormwood.
The way was led by Hector son of Priam, peer of murderous Mars, with his round shield before him--his shield of ox-hides covered with plates of bronze--and his gleaming helmet upon his temples.
The mountain on which they were journeying was covered with pines that rose without a branch some seventy or eighty feet, and which frequently doubled that height by the addition of the tops.
Beyond this rock they passed the mouth of a river on the right bank of the Columbia, which appeared to take its rise in a distant mountain covered with snow.
So the lazy girl had to go home covered with pitch, and the cock on the well called out as she saw her:
In the farthest corner of the garden was a tree quite covered with lovely white blossoms.
They tired Jim and Eureka out, and although the field of battle was thickly covered with mashed and disabled Mangaboos, our animal friends had to give up at last and allow themselves to be driven to the mountain.
After breakfast the men set out to hunt, while the women went to a large pool of warm water covered with a green scum and filled with billions of tadpoles.
He huddled up and breathed into the collar which covered his mouth, and was not wholly cold.
The whole plain was covered with huts, cottages, and tents.
Moreover, in sea-shells, it is known that the parts habitually covered and shaded by the mantle of the animal, are of a paler colour than those fully exposed to the light, just as is the case with this incrustation.