covered option meaning
Noun: covered option
- A put or call option backed by the shares underlying the option
Derived forms: covered options
Type of: option
Option position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option.
- covered or hedge option strategies: [Finance]Strategie ...
- covered: Adjective: covered ...
- option: Noun: option ...
- Investors can limit their risk by writing call options on securities they already own, known as covered options.
- For example, an investor who owns 500 shares of Barrick and sells five Barrick call options is in a covered option position.
- That price covered options, but it was a short list, including air-conditioning ( $ 900 ), stereo system with cassette player ( $ 605 ) and power steering ( $ 260 ).
- NATO officials said the planning covered options from large-scale air strikes against Serbian air defenses and other strategic sites all over Yugoslavia, through moving peacekeeping troops or monitors onto the border between Albania and Kosovo.
- That's still a high payout level for a stock fund, which this one manages by maintaining a portfolio of companies with above-average payouts, and also by habitually selling call-covered options.