Covered call

Covered call,

Definition of Covered call:

  1. See covered option.

  2. Covered calls are a neutral strategy, meaning the investor only expects a minor increase or decrease in the underlying stock price for the life of the written call option. This strategy is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously has a short position via the option to generate income from the option premium.

  3. A covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. To execute this an investor holding a long position in an asset then writes (sells) call options on that same asset to generate an income stream. The investor's long position in the asset is the "cover" because it means the seller can deliver the shares if the buyer of the call option chooses to exercise. If the investor simultaneously buys stock and writes call options against that stock position, it is known as a "buy-write" transaction.

How to use Covered call in a sentence?

  1. It is often employed by those who intends to hold the underlying stock for a long time but does not expect an appreciable price increase in the near term.
  2. This strategy is ideal for an investor who believes the underlying price will not move much over the near-term.
  3. A covered call is a popular options strategy used to generate income in the form of options premiums.
  4. To execute a covered call, an investor holding a long position in an asset then writes (sells) call options on that same asset.

Meaning of Covered call & Covered call Definition

Covered Call,

What is Covered Call?

  • Covered Call definition is: A closed call option refers to a financial transaction in which the basic amount of the call option that the investor writes is equal to the security. To do this, an investor writes (sells) a call option on an asset with a long position in the asset to generate a source of income. The investor's long position in an asset is for hedging because the seller can leave the shares if the call option buyer decides to do so. If an investor buys a stock at the same time and has the option to call against these stock positions, it is a buy and a written transaction.

    • Closed calls are a popular options strategy that charges in the form of option premiums.
    • To make a closed call, an investor who buys the issued asset writes (sells) the call option on the same asset.
    • It is widely used by those who want to keep the stock in the long run but do not expect a significant increase in price in the short term.
    • This strategy is ideal for investors who believe that the base price is unlikely to rise in the short term.

Literal Meanings of Covered Call


Meanings of Covered:
  1. Put something in front of (something) or in front of it, especially to save or hide it.

  2. Scattered (one area)

  3. Cover (a title) by explaining or analyzing its key aspects or events.

  4. (One amount) will be enough to pay

  5. It masks a sound or action (something) with another sound or action.

  6. A gun (intended) to prevent it from moving or escaping.

  7. Record or play a new version (song) that was originally played by someone else.

  8. Companionship with (male animals, especially horses) (female)

  9. Play one high card in one round.

  10. Something that sits on, above or around something, especially to protect or hide it.

  11. Houses or dwellings searched by people at risk.

  12. Protection through liability, loss or damage insurance.

  13. Recording or performance of a song previously recorded by another artist.

  14. Put it on the table in a restaurant.

Sentences of Covered
  1. The table is covered with a checkered tablecloth.

  2. 8 hectares of land

  3. A series of novels from 1968 to the present

  4. Subsidies are provided to cover the cost of roof insulation materials.

  5. Louise laughed to hide her embarrassment.

  6. He took up arms to cover Clift

  7. Another artist who hid the song is U2

  8. A hardworking Stalin who carried 40 Mars this season

  9. Covering ten will make the strategy fail

Synonyms of Covered

unfold, shelter, provide for, range, sleeve, mask, refuge, wrapping, protection, obscure, hide, casing, hiding, pay back, put something on top of, cowling, spread, jacket, security, cancel out, unroll, pay for


Meanings of Call:
  1. Give a specific name to (baby or animal).

  2. Scream (word or words)

  3. Call or try to reach (someone or number).

  4. Request or apply for participation.

  5. Declare or decide that an event (including, but not limited to, a meeting, strike or election) will take place.

  6. Visit (someone) immediately.

  7. (Referee or other official affair) Pronunciation (ball, putt or other action) as indicated.

  8. Run the cause (subroutine).

  9. Scream for a phone call or call for attention.

  10. Common call from birds or other animals.

  11. Matters where you talk to someone on the phone or try to contact someone on the phone

  12. Short social tour.

  13. A phone call or request to have something happen.

  14. Order or request to appear.

  15. The decision or decision of a referee or other official (in a game) is traditionally called a ball that is out of the game or a rule has been violated.

  16. Instructions for running a subroutine.

Sentences of Call
  1. He called his daughter Hana

  2. He heard a frightened voice calling out his name

  3. Can I call again?

  4. Representatives of the three teams nominated before the Commissioner

  5. It seems that there is no other option but to hold parliamentary elections.

  6. He promised Celia that he would go to the clinic.

  7. The line judge calls the ball away

  8. One subroutine can call another subroutine (or itself)

Synonyms of Call

scream, social call, order, summon, assemble, place a call to, plea, request, shriek, phone call, get someone on the phone, telephone call, get, shout, visit, convene, dial, telephone, name, sing out, call together