Meaning 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
More terms such as Covered call in Dictionary C.
- Definition Competition:
- Examples Intra- or intermarket rivalry between or among businesses trying to obtain a larger piece of the same market share covered call definition.
- Definition Cross-Border Risk:
- Examples volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent covered call explain.
- Definition Continuous Compounding:
- Examples accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned constantly, and at each instant, the interest that accrues immediately begins earning covered call what is.
- Definition Country Financial Risk:
- Examples Centers around the ability of a national economy to generate enough foreign exchange to meet payments of interest and principal on its foreign debt covered call meaning.
- Definition Covered Writer:
- Examples An investor who writes options only on stock that he or she owns, so that option positions may be collected covered call abbreviation.
