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Covered writer |
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Covered writerAn investor who writes options only on stock that he or she owns, so that option positions may be collected.Covered writer Similar MatchesCovered Interest Rate ParityCovered Interest Rate ParityThe principle that the yields from interest-bearing foreign and domestic investments should be equal when the forward currency market is used to predetermine the domestic currency payoff from a foreign investment. Covered positionCovered positionUse of an option in a trading strategy in the underlying asset is already owned. Uncovered call writingUncovered call writingA short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts. Covered interest rateCovered interest rateThe covered interest rate, in a currency other than your own, is the nominal interest rate plus the forward premium on the currency; thus the percent you will earn holding the foreign asset while protecting against exchange-rate change by selling the foreign currency forward. UncoveredUncoveredSee: 'naked'. Further Suggestionscovered straddleCovered position Covered option covered combination Covered interest arbitrage covered writing Covered Covered Straddle Write Covered Straddle covered warrant Covered call Covered interest parity Covered call writing strategy Uncovered interest parity Covered interest arbitrage Uncovered Put writing Uncovered options Covered or hedge option strategies |
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