covered

covered
A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security. That is, a short call is covered if the underlying stock is owned, and a short put is covered (for margin purposes) if the underlying stock is also short in the account. In addition, a short call is covered if the account is also long another call on the same security, with a striking price equal to or less than the striking price of the short call. A short put is covered if there is also a long put in the account with a striking price equal to or greater than the striking price of the short put. Bloomberg Financial Dictionary
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A position is described as covered if the cash or asset to be delivered by the contractual obligation in the derivatives position is already held, e.g. if you sell a copper future and thereby become obligated to deliver 25 tonnes of copper you would be covered if you already held the copper. Not to be confused with margin. Dresdner Kleinwort Wasserstein financial glossary

Financial and business terms. 2012.

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  • -covered — UK [kʌvə(r)d] US [kʌvərd] suffix used with some nouns for making adjectives meaning covered with a particular thing chocolate covered sweets a velvet covered sofa Thesaurus: to be covered with somethingsynonym …   Useful english dictionary

  • covered — [ kʌvərd ] suffix used with some nouns for making adjectives meaning covered with a particular thing: chocolate covered candy a velvet covered sofa …   Usage of the words and phrases in modern English

  • Covered — Cov ered (k?v ?rd), a. Under cover; screened; sheltered; not exposed; hidden. [1913 Webster] {Covered way} (Fort.), a corridor or banquette along the top of the counterscarp and covered by an embankment whose slope forms the glacis. It gives the… …   The Collaborative International Dictionary of English

  • covered — covered; un·covered; …   English syllables

  • covered — index blind (concealed), covert, fully secured, hidden, impalpable, ironclad, latent, safe …   Law dictionary

  • covered — adj. VERBS ▪ be ▪ become ▪ remain ▪ leave sb/sth ▪ The car sped past, leaving us covered in mud. ADVERB …   Collocations dictionary

  • Covered — Cover Cov er (k?v ?r), v. t. [imp. & p. p. {Covered} ( ?rd); p. pr. & vb. n. {Covering}.] [OF. covrir, F. couvrir, fr. L. cooperire; co + operire to cover; probably fr. ob towards, over + the root appearing in aperire to open. Cf. {Aperient},… …   The Collaborative International Dictionary of English

  • covered — adjective overlaid or spread or topped with or enclosed within something; sometimes used as a combining form (Freq. 12) women with covered faces covered wagons a covered balcony • Ant: ↑bare • Similar to: ↑ …   Useful english dictionary

  • covered — накрыл; накрытый covered market крытый рынок covered wagon крытый фургон covered manege крытый манеж covered storehouse крытый склад …   English-Russian travelling dictionary

  • -covered — UK [kʌvə(r)d] / US [kʌvərd] suffix used with some nouns for making adjectives meaning covered with a particular thing chocolate covered sweets a velvet covered sofa …   English dictionary

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