covered option investment & finance definition
An option contract where the person writing the option protects him- or herself by owning the underlying shares.
Unfortunately, the uncovered option can just as easily result in a loss. This is likely to occur when the seller does not investigate the status of the underlying investment properly, and offers a lower price to the purchaser of the uncovered option.
Covered Option
A position offset by an equal and opposite position in the underlying security. ...
Long Straddle
A long straddle is the simultaneous purchase of a put and a call on the same ...
Covered Option
An option position that is offset by an equal and opposite position in the underlying security. (see Options)
Covered Put ...
Covered Option: A short call or put option position that is covered by the sale or purchase of the underlying futures contract or other underlying instrument.
Covered options: A short options position in which the writer has the means of meeting the obligation. For example, a person who is short a call option and long the stock.
Covered option
Option position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option.
Covered position
Use of an option in a trading strategy in the underlying asset is already owned.
Uncovered Option - A written option is considered to be uncovered if the investor does not have a corresponding position in the underlying security.
Uncovered Option: Industry slang for call or put options that are written and not covered or have another position that will limit their liability.
Underlying Instrument: A trading instrument subject to purchase upon exercise.
Covered option
An open short option position that is fully offset by a corresponding stock or option position.
uncovered option A sold (written) call option or a bought put option whereby the trader does... uncovered put A short put option in which the writer does not have the corresponding short...
Uncovered Option Also known as a naked option. A short position, not protected by offsetting options, in which the writer of the options lacks the stock or collateral that would be required upon assignment.
Two common ways to sell calls and puts vary greatly in degree of risk: writing covered options, and writing naked options.
We may update our uncovered option signals at any time during regular trading hours (email-alerts are issued immediately thereafter). In addition, we will update our signals daily by 8:30 PM EST.
Covered option: An option that is written against an opposite position in the underlying stock, futures contract, or commodity at the time of execution or placement of the order.
Covered writer: The seller of a covered option, put or call.
A split share corporation is a corporation that exists for a defined period of time to transform the risk and investment return (capital gains, dividends, and possibly also profits from the writing of covered options) of a basket of shares of ...
Naked Option
See Uncovered Option.
Naked writer
See Uncovered call writing and Uncovered put writing.
Margin Requirement (Options)
The amount of cash the writer of an uncovered option is required to maintain in his account to cover daily position valuation and possible intraday price changes.
By themselves, these positions are called naked strategies because they do not involve an offsetting or risk-reducing position in another option or the underlying security. Related: Covered option strategies. Antithesis of covered option.
Padre 3210 has hit the nail on the head. I don't recommend buying call options at all. Selling covered options, specifically at or above cost basis is a great way to help your returns in this market.
Option income fund A mutual fund that attempts to increase current income by writing covered options on securities held in the fund's portfolio.
The sale of a call or put option without holding an equal and opposite position in the underlying instrument. Also referred to as an uncovered option, naked call, or naked put.
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Futures-equivalent ...
Sellers of Options have a different strategy and are taking unlimited risks for the sake of a limited profit, unless they are selling covered Options, ...
 See also: Option, Market, Underlying, Trading, Risk
  
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