covered writer investment & finance definition
The seller or writer of a call option who owns the underlying asset that may be required for delivery. Covered writers are usually conservative investors seeking extra current income.
Covered Write: Writing a call against a long position in the underlying stock.
Covered writer
An investor who writes options only on stock that he or she owns, so that option positions may be collected.
Covered Write: The sale of a call option against an existing long (short) position in the underlying contract.
Crack Spreads: The spread between crude oil and its products.
Covered writer: The seller of a covered option, put or call.
Credit: Money received from the sale of options.
sell covered writes for 2 months hence, make 10% in 2 months and get the money up front. Buy more Deere stock long with the proceeds. Any questions? You might want to go back a few months and see my advice regarding Apple....
The idea behind a Covered Call (also called Covered Write) is to hold stock over a long period of time and every month or so sell out-of-the-money call options.
I am also using the opportunity for our enhanced yield program. When stock prices move lower and option premium moves higher, it is a great time to do covered writes. There are many good dividend stocks that fit the program.
Covered call writing strategy
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Covering ...
 See also: Option, Cover, Close, Strategy, Underlying
  
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