A term used to describe the situation that exists when an option writer already owns shares and can therefore turn them over to the option buyer, without having to go to the market to purchase them first.
Options investment strategy involving writing (selling) a call while owning shares in the underlying stock. Such a strategy has the potential for limited profits and unlimited losses until the underlying stock price falls to zero.
a call option written by a person who owns the underlying security.
A short position in a call option combined with a long position in the underlying asset; is considered to be one of the safest option positions.
(1) a call whose seller owns the security, or a security convertible. (2) a call whose holder sold the underlying security short. Used to reduce risk; if the security falls (rises) in value, the call option will rise (fall). See call option.
The selling of a call option while simultaneously holding an equivalent position in the underlying security. see also covered put, uncovered call, uncovered put.
A trading position where the trader has sold a call against an equivalent amount of stock. NB: This is relevant for Exchange-Traded Options. Covered warrants cannot be written (sold as an initiating trade)
a market-neutral investment strategy that protects the investor from the downside of owning a stock, while still affording him some of the upside
an option strategy used to increase the yield on a stock holding in a relatively flat market or a falling market
an option strategy with which you sell a call against shares
an option that you write against shares that you purchase or already own
a short call option which is backed -- or covered -- by sufficient pre-purchased shares of the underlying stock
a stock call option that is written (i
a strategy where the investor buys shares of stock and then writes (or sells) call options against those shares
A clever technique invented by brokers that allows a customer to pay double commissions to purchase a financial instrument that behaves almost identically to being a put option seller.
You own stock shares and you sell calls at a strike greater than or equal to the stock purchase price
The process of selling a call option while at the same time holding an equivalent position in the original security.
An option strategy in which a call option is written against an equivalent amount of long stock. Example: writing 2 XYZ May 60 calls while owning 200 shares or more of XYZ stock. See also Buy-write and Overwrite
A long position in an asset combined with a short position in a call option on the asset, where the asset position will cover the obligation of the call in case it is exercised.
A trading strategy which consists of holding a long position in an asset and selling call options on that same asset.
A short call option position against a long position in an underlying stock or futures.
A call option whose seller (writer) owns the underlying security and is able to deliver it if the option is exercised.
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.
A call option that is sold against stock owned by the writer of the call.
An option strategy in which a call option or options are sold against equivalent...
A call option that has been sold and is backed by an equivalent number of shares in stock.
The selling of a call option while simultaneously holding an equivalent position in the underlying commodity. This is an attempt to take advantage of a neutral or declining stock. If the option expires unexercised, the writer keeps the premium. If the holder exercises the option, the stock must be delivered, but, because the writer already owns the stock, risk is limited. This is the opposite of an uncovered call, when the writer sells a call for a stock that he/she does not already own, a dangerous strategy with unlimited risk.
The sale of call options while long the underlying instrument. The covered call writer gives up any potential upside beyond the strike of the calls in exchange for the premium income.
An option strategy in which a call option is written against long stock on a share-for-share basis.
A short position where the writer is long (i) the underlying security; (ii) a call option with the same or lower exercise price that expires no sooner than the short call, or; (iii) an escrow receipt or guarantee letter from a bank.
A call option whose writer possesses the underlying security and, is able to fulfil requirements, if the option is exercised.
A covered call is a combination of owning shares of a stock or other securities and selling (or writing) a call option on those shares in corresponding amounts. It has essentially the same payoffs as a short put option on the stock, and thus should have essentially the same price (or premium) as that of a short put.