Covered Writer

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Dictionary Says

Definition of 'Covered Writer'

An options seller who owns the underlying security represented by the options contract. A covered writer holds the underlying security as a hedge against the options contract. If the options contract is exercised, the covered writer can "cover" the contract because he or she holds the underlying security. Options are contracts that give the buyer the right but not the obligation to buy (call) or sell (put) shares at a particular price and future date.
Investopedia Says

Investopedia explains 'Covered Writer'

Covered options writers limit risk by owning the underlying security. The covered writer profits by receiving premiums paid by the purchaser of the options contract. Covered writing is generally more conservative that naked writing, where the options seller does not own the underlying security.
Search results for

'Covered Writer'

  • CFA Level 1 Study Guide - Derivatives - Managing Risk with Options ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/managing-risk-options-strategies-covered-calls-protective-puts.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Using LEAPS In A Covered Call Write

    http://www.investopedia.com/articles/optioninvestor/04/021104.asp
    ... life. But the traditional covered call writer still has a lot of potential
    downside risk in holding JPM stock longer. Theoretically ...

  • Write Covered Calls To Increase Your IRA Income

    http://www.investopedia.com/articles/optioninvestor/09/write-covered-calls-increase-income.asp
    ... This strategy is known as "covered" call writing because the writer/investor
    owns the stock that the call is written against. Therefore ...

  • Options Hazards That Can Bruise Your Portfolio

    http://www.investopedia.com/articles/optioninvestor/07/option_risks.asp
    ... A covered call writer receives the premium from the option. The call writer
    is covered by owning the underlying stock. However, if ...

  • Series 7 Study Guide - Derivatives - Option Positions ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/option-positions.asp
    ... If the call writer does not have the underlying shares on deposit, she has written
    an uncovered call, which is much riskier for the writer than a covered call. ...

  • Understanding Your Insurance Contract

    http://www.investopedia.com/articles/pf/06/insurancecontracts.asp
    ... Pooja Dave. Pooja Dave. Pooja Dave is a content writer/developer cum research
    associate at InfoAnalytica, India. She also works as ...

  • Series 63 Study Guide - Securities - Federal Covered Securities ...

    http://www.investopedia.com/exam-guide/series-63/securities/federal-covered-securities.asp
    ... Exam Tips and Tricks Note: NASDAQ small cap securities are NOT federal covered
    securities. ... Investopedia.com. Investopedia.com. No writer biography is available. ...

  • Series 66 Study Guide - Regulation of Securities - Federal Covered ...

    http://www.investopedia.com/exam-guide/series-66/regulation-of-securities/federal-covered-securities.asp
    ... Exam Tips and Tricks Please note that Nasdaq small-cap securities are not federal
    covered securities. ... Investopedia.com. No writer biography is available. ...

  • Series 65 Study Guide - Regulation of Broker-Dealers and ...

    http://www.investopedia.com/exam-guide/series-65/broker-dealers-securities-registration/state-authority-federal-covered-securities.asp
    ... Federal covered securities include any of the securities listed below:
    Exchange-listed Securities - This ... Investopedia.com. No writer biography is available. ...

  • Trade Smarter With Equivalent Positions

    http://www.investopedia.com/articles/optioninvestor/09/equivalent-positions.asp
    ... a good price (and then quickly sell the stock). Thus, the strategic edge
    belongs to the put seller, not the covered call writer. ...

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