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 ?
And when the children ran in that afternoon, they found the Giant lying dead under the tree, all covered with white blossoms.
This point is said to present one of the most beautiful scenes on the Columbia; a lovely meadow, with a silver sheet of limpid water in the center, enlivened by wild-fowl, a range of hills crowned by forests, while the prospect is closed by Mount Hood, a magnificent mountain rising into a lofty peak, and covered with snow; the ultimate landmark of the first explorers of the river.
About thirty miles above Point Vancouver the mountains again approach on both sides of the river, which is bordered by stupendous precipices, covered with the fir and the white cedar, and enlivened occasionally by beautiful cascades leaping from a great height, and sending up wreaths of vapor.
The top is likewise covered with fish skins, secured by cords passing through holes in the edge of the basket.
The two rivers, about the place of their confluence, are bordered by immense prairies covered with herbage, but destitute of trees.
The straight road was nearer but little used and had no stakes, or only poor ones covered with snow.
The horse was evidently exhausted, his hair had all curled up from sweat and was covered with hoar-frost, and he went at a walk.
The horse kept straight along the road through the drifted snow, and before they had gone another hundred yards the straight line of the dark wattle wall of a barn showed up black before them, its roof heavily covered with snow which poured down from it.
to the extreme point of Tierra del Fuego, is densely covered by impenetrable forests.
In the middle of the continent there is a broad intermediate band, including central Chile and the provinces of La Plata, where the rain-bringing winds have not to pass over lofty mountains, and where the land is neither a desert nor covered by forests.
blindness of the Asphalax, a Gnawer living under ground, and of the Proteus, a reptile living in dark caverns filled with water; in both of which animals the eye is in an almost rudimentary state, and is covered by a tendinous membrane and skin.
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.