Covered position
Use of an option in a trading strategy in the underlying asset is already owned.
Credit quality ...
An uncovered position such as the position of a writer of an option which is not covered by an opposite position in the underlying instrumen...(Read more)
NAPM ...
exchange risk-the possibility of a loss on an uncovered position resulting from an appreciation or depreciation of a foreign currency; ...
Your risk is limited regardless of the position, because it's a covered position. The only thing you need to concern yourself is, how much you're in LOVE WITH YOUR STOCK. A word of advice? NEVER, EVER MARRY YOUR TRADE(s).
A securities position that is not hedged from market risk. Both the potential gain and the potential risk are greater when a position is naked instead of covered (a covered position is hedged from market risk).
 See also: Long position, Naked Option, Mergers, NASD, Administration
  
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