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Covered Call
(redirected from Covered call writing)

   Also found in: Wikipedia 0.06 sec.
Covered Call
Having a long position in an asset combined with a short position in a call option on the same underlying asset.

Notes:
This is considered to be one of the safest option positions.


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.


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? Mentioned in ? References in periodicals archive
 
Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option.
Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option.
Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option.
 
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