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Covered write

• Is the sale of an option against a position in the underlying instrument. Often this is the sale of a call against a long position in the stock. It could also be the sale of a put against a short position in the stock. Here, if the put is exercised, a long stock position is assigned to the seller of the option. Then this newly acquired long position is offset by the previously held short position. The covered write can also apply to warrant and other option positions.

 
 Embedded terms in definition
 Call
Held
Long position
Long
Offset
Option
Position
Put
Sale
Short position
Short
Stock
Underlying
Warrant
Write
 
 Related Terms
 Covered call
Covered call write
Covered call writing strategy
Covered interest arbitrage
Covered or hedge option strategies
Covered put
Covered warrant
Times interest covered
Write
Write down

<< Covered warrant Cpa >>

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