Covered Call

Financial Definition of Covered Call

Meaning of Covered Call

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.

Related Entries of Covered Call in the Encyclopedia of Law Project

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Covered Call in Historical Law

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Legal Abbreviations and Acronyms

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