Meaning COVERED OPTION: Option position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option
More terms such as Covered option in Dictionary C.
- Definition Characteristic Line:
- Examples The market model applied to a single security; a regression of security returns on the benchmark return. The slope of the regression line is a security's beta covered option definition.
- Definition Certified Check:
- Examples A bank guaranteed check for which funds are immediately withdrawn, and for which the bank is legally liable covered option explain.
- Definition Clearinghouse:
- Examples futures exchange through which transactions executed on its floor are settled by a process of matching purchases and sales. A clearing organization is also charged with the proper conduct of delivery covered option what is.
- Definition Corporation:
- Examples A legal entity that is separate and distinct from its owners. A corporation is allowed to own assets, incur liabilities, and sell securities, among other things covered option meaning.
- Definition Consumer Goods:
- Examples Goods not used in production but, bought for personal or household use such as food, clothing, and entertainment covered option abbreviation.
