Advertising

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.

 
 

Follow this link for all the terms related to call.

 
 Embedded terms in definition
 Call option
Call
Exercise
Limit
Market
Option
Position
Risk
Shares
Short
Stock
Underlying
Writer
 
 Related Terms
 

<< Coverage ratios Covered call write >>

Multi-Tasking In Your 30s, 40s or 50s: Managing for today and saving for tomorrow, including a child's college expenses and your retirement More...

Nearly all men can stand adversity, but if you want to test a man's character, give him power. - Abraham Lincoln

Advertising



Copyright 2009-2019 GVC. All rights reserved.