Meaning COVERED PUT: A put option position in which the option writer also is short the corresponding stock or has deposited, in a cash account, cash or cash equivalents equal to the exercise of the option. This limits the option writer's risk because money or stock is already set aside. In the event that the holder of the put option decides to exercise the option, the writer's risk is more limited than it would be on an uncovered or naked put option
More terms such as Covered put in Dictionary C.
- Definition Council Of Economic Advisers:
- Examples A group of economists appointed by the President of the United States to provide economic counsel and help prepare the president's budget presentation to Congress covered put definition.
- Definition Carrot Equity:
- Examples British slang for an equity investment with the added benefit of an opportunity to purchase more equity if the company reaches certain financial goals covered put explain.
- Definition Chartists:
- Examples A technical analyst who charts the patterns of stocks, bonds, and commodities to find trends in patterns of trading used to advise clients. Related: Technical analysts covered put what is.
- Definition Conversion Feature:
- Examples Specification of the right to transform a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or bonds to common stock covered put meaning.
- Definition Certificate Of Deposit (CD):
- Examples deposit this is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A CD has a maturity date and a specified interest rate, and can be issued in any covered put abbreviation.
