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Covered Call
(redirected from Covered calls)

   Also found in: Wikipedia 0.07 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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By July, the price of Linear Tech was about 25% higher, and he advised investors to hedge their positions by selling in the money covered calls.
Covered Calls will show readers how to use options to make consistent, steady profits.
The team sells covered calls on 25 to 75 percent of the portfolio.
 
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