Covered call


Also found in: Wikipedia.

Covered call

A short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the holder of that option decides to exercise it.

Covered Call

A position in which an investor short sells or writes an option contract, giving the buyer the ability to buy the underlying asset on demand while also owning the underlying asset. For example, an investor has a covered call position when he writes a call for 100 shares of AT&T and owns at least 100 shares of AT&T. This means that if the holder of the call exercises the option, the investor will be able to sell the shares without a problem. Investors often use a covered call strategy when they do not expect the option to be exercised and simply want to collect the premiums without exposing themselves to the risk of loss if the option is actually exercised.
References in periodicals archive ?
Fiduciary Asset Management was established as an independent investment firm in 1994 and has managed covered call option portfolios for clients since 1997.
On March 16, 2015, Credit Suisse declared Coupon Payments for the Gold Shares Covered Call ETN and the Silver Shares Covered Call ETN.
First Trust/Fiduciary Asset Management Covered Call Fund (the "Fund") (NYSE: FFA) today declared its regularly scheduled quarterly distribution payable on September 28, 2007 to shareholders of record as of September 20, 2007.
On February 17, 2015, Credit Suisse declared Coupon Payments for the Gold Shares Covered Call ETN and the Silver Shares Covered Call ETN.
The Fund will vary the balance between convertible, equity and high-yield securities and the degree to which the Fund engages in a covered call strategy from time to time based on security valuations, interest rates and other economic market and market factors.
Born To Sell's customizable covered call screener makes it easy for income-oriented investors to scan hundreds of thousands of buy-write trades instantly.
The Madison/Claymore Covered Call Fund (NYSE: MCN) today declared its quarterly dividend of $0.
On January 12, 2015, Credit Suisse declared Coupon Payments for the Gold Shares Covered Call ETN and the Silver Shares Covered Call ETN.
On December 15, 2014, Credit Suisse declared Coupon Payments for the Gold Shares Covered Call ETN and the Silver Shares Covered Call ETN.
Correct application of the covered call technique represents an excellent money making opportunity for traders and investors alike.
On November 17, 2014, Credit Suisse declared Coupon Payments for the Gold Shares Covered Call ETN and the Silver Shares Covered Call ETN.
net to Born To Sell solidifies its lead in covered call software and gives investors an improved covered call calculator.