covered calls

covered calls: A call option for which the owner of a security grants the buyer of the call option the right to purchase a security owned by the option seller. The opposite of naked calls. In theory, selling covered calls can be a hedging strategy. If investment prices fall, the investor's loss will be offset by the income from the covered call. (When prices fall, the call option is likely to expire unexercised because the call buyer can buy the security on the open market at a lower price.) On the other hand, if prices rise, the seller's gain is limited to the difference between the seller's book value and the option strike price (which in this case is probably less than the market price), but the seller also retains the proceeds of the option sale. For banks, regulatory restrictions as well as practical difficulties may restrict the suitability of covered calls as hedging tools. American Banker Glossary

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Covered call — Payoffs and profits from buying stock and writing a call. A covered call is a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other… … Wikipedia
Covered call — Ein Covered Call ist eine Optionsstrategie, bei welcher man Wertpapiere und Optionen verbindet. Gelegentlich wird für diese Variante auch der Name Buy Write Strategie verwendet. Bei einem Covered Call erwirbt man ein Underlying (buy) und verkauft … Deutsch Wikipedia
Covered Call — Ein Covered Call ist eine Optionsstrategie, bei welcher man Wertpapiere und Optionen verbindet. Gelegentlich wird für diese Variante auch der Name Buy Write Strategie verwendet. Bei einem Covered Call erwirbt man ein Underlying (buy) und verkauft … Deutsch Wikipedia
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 … Financial and business terms
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… … Financial and business terms
Covered warrant — In finance a covered warrant (sometimes called naked warrant) is a type of warrant that has been issued without an accompanying bond or equity. Like a normal warrant it allows the holder to buy or sell a specific amount of equities, currency or… … Wikipedia
Covered Straddle — An option strategy that involves writing the same number of puts and calls with the same expiration and strike price on a stock owned by the investor. A covered straddle is a bullish strategy. The covered straddle strategy is not a fully covered… … Investment dictionary
Buy-write — The term buy write is used to describe an investment strategy in which the investor buys stocks and writes call options against the stock position. The writing of the call option provides extra income for an investor who is willing to forego some … Wikipedia
CBOE S&P 500 BuyWrite Index (BXM) — The CBOE S P 500 BuyWrite Index (ticker symbol BXM) is a benchmark index designed to show the hypothetical performance of a portfolio that engages in a buy write strategy. DescriptionsThe term buy write is used because the investor buys stocks… … Wikipedia
Ernie Zerenner — Infobox writer name = Ernie Zerenner caption = birthname = Ernest Zerenner birthdate = Birth date and age|1941|9|8|df=yes birthplace = Jersey City, New Jersey, USA nationality = American occupation = Engineer, Entrepreneur, Writer notableworks =… … Wikipedia

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