An OPTION position where the seller of a CALL OPTION owns the UNDERLYING ASSET that must be delivered if the buyer EXERCISES the option. Selling covered calls is a relatively low RISK way of generating PREMIUM income since the cost of the underlying is already known.
What is COVERED CALL?
Featuring Black’s Law Dictionary
Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.
- What is a statute of limitations and how long does it last?
- What is the Fair Housing Act and who does it protect?
- How Long is a Life Sentence?
- What is Entrapment?
- A Guide to the Types & Classes of Bankruptcy
- A Simple Guide to Medicare vs Medicaid
- What are the Miranda Rights?
- Property Management Law
- How Arbitration Works
- What is the Fourth Amendment?
- What Is A Police Welfare Check?
- Best Way to Find Someone in Jail for Free
- How to Transfer a Car Title When The Owner Is Deceased
- How To Find A Name & Address Using A License Plate Number
- Why Do Policemen Touch Your Tail Light When They Pull You Over?
- What Can You Do At 18 Legally?
- Best Way to Write a Professional Letter to a Judge
- How To Find An Inmate’s Release Date
- Signing a Letter on Someone Else’s Behalf
- How Do You Look up License Plate Numbers?