Financial Dictionary

This dictionary contains:
24549
financial terms

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.

RELATED TERMS
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Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.

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.

Writer
A person who makes an opening sale of an option contract.

Market
1) The total demand for a good. 2) The set of all actual and potential buyers of a good or service. 3) The place where people buy and sell. 4) The process by which buyers and sellers of goods, services and factors of production interact to determine prices and quantifies.

Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into.

Basis
The price an investor pays for a security plus any out-of-pocket expenses. It is used to determine capital gains or losses for tax purposes when the stock is sold.

Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.

Security
Piece of paper that proves ownership of stocks, bonds, and other investments.



SIMILAR TERMS
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Coven Inversiones, SICAV, S.A.
Coven Inversiones, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment.

Covenant
An agreed action to be undertaken (Positive) or not done (Negative). A breach of a covenant is a default.

COVENANT Credit Union
COVENANT is a credit union with head office in TULSA, OK

COVENANT SAVINGS Credit Union
COVENANT SAVINGS is a credit union with head office in COPPERAS COVE, TX

COVENTRY Group Limited
COVENTRY Group Limited is a large Australian company in the field of automobile and components. Their Australian Stock Exchange (ASX) code is CYG.

Coventry Health Care
Coventry Health Care is a top United States corporation in the field of health care equipment and services, and its estimated market value is 5,660 million US dollars.

COVENTRY TEACHERS Credit Union
COVENTRY TEACHERS is a credit union with head office in COVENTRY, RI

Cover
The amount above UNITY of a debt service ratio.

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 foreign currency loan
A loan denominated in a currency other than that of the borrower's home country, for which repayment terms are prearranged through the use of a forward currency contract.

Covered option
Option position that is offset by an equal and opposite position in the underlying security.

Covered position
Use of an option in a trading strategy in the underlying asset which is already owned.

Covered put
A put option position in which the option writer also is short the corresponding stock or has deposited, in a cash account, cash or cash equivalents equal to the exercise price of the option.

Covered straddle
An option strategy in which one call and one put with the same strike price and expiration are written against 100 shares of the underlying stock.

Covered writer
An investor who writes options only on stock that he or she owns, so that option premiums may be collected.



PREVIOUS AND NEXT TERMS
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Coupon equivalent yield
True interest cost expressed on the basis of a 365-day year.

Coupon payments
A bond's interest payments.

Coupon rate
In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year.

Covenant
An agreed action to be undertaken (Positive) or not done (Negative). A breach of a covenant is a default.

Cover
The amount above UNITY of a debt service ratio.

Covered

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 foreign currency loan
A loan denominated in a currency other than that of the borrower's home country, for which repayment terms are prearranged through the use of a forward currency contract.

Covered option
Option position that is offset by an equal and opposite position in the underlying security.

Covered position
Use of an option in a trading strategy in the underlying asset which is already owned.

Covered put
A put option position in which the option writer also is short the corresponding stock or has deposited, in a cash account, cash or cash equivalents equal to the exercise price of the option.

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This dictionary contains 24549 terms.







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