Covered call


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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.
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Credit Suisse has declared coupon payments for the following ETNs: Alerian MLP Index ETN (NYSE Arca: AMJL), Credit Suisse X-Links Multi-Asset High Income ETN (NYSE Arca: MLTI), Credit Suisse X-Links Gold Shares Covered Call ETN (NASDAQ: GLDI), Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ: SLVO).
Example 2: Meg sells a three-month, $22 covered call on ABC, as described.
Your proceeds from the sale of a covered call can offset some or all of the cost of purchasing a protective put.
2002-66, the Service held that if a grantor of a qualified covered call option (QC) holds a put option on the same underlying equity, the purchased put will cause the stock and the QC to be part of a larger straddle and ineligible for the Sec.
For example, a covered call can be designed with an in-the-money call or an out-of-the-money call; it can be designed as fully covered or as partially covered; and it can be designed so that the investor sells shares if the call is in-the-money at expiration or repurchases the call.
Our portfolio's are executing options and covered call positions to navigate the volatility, provide a hedge of protection and some growth in our funds.
Credit Suisse X-Links Gold Shares covered call ETN (GLDI) has declared a coupon payment of USD0.
1092(c)(4), a taxpayer holds a qualified covered call option if the following five factors are met at the time the call option is written: (1) the option is traded on a national securities exchange; (2) the option will not expire for more than 30 days; (3) the option is not deep-in-the-money; (4) the option is not granted by an options dealer; and (5) any gain or loss with respect to the option is not ordinary income or loss.
Fund Combines Active Stock Picking and Covered Call Strategies
The two primary motives for selling a covered call are: to protect against a potential pullback in the near term, and to earn extra income on a stagnating stock.
Credit Suisse has declared coupon amounts for the Credit Suisse X-Links Gold Shares covered call ETN (NASDAQ: GLDI) and the Credit Suisse X-Links Silver Shares covered call ETN.
The Navellier Covered Call Portfolio is taking advantage of the tremendous option premiums that investors can now obtain due to the high volatility that has characterized the stock market as of late.