covered option Synonyms

No Synonyms and anytonyms found

covered option Meaning

Wordnet

covered option (n)

a put or call option backed by the shares underlying the option

covered option Sentence Examples

  1. The investor decided on a covered option strategy to generate income while limiting downside risk.
  2. Since she wasn't bullish on the stock price, she chose a covered option to capitalize on any premium received.
  3. The covered option offered a more conservative approach compared to riskier options strategies.
  4. By selling a covered option, he gave up some potential upside profit in exchange for a guaranteed premium.
  5. The covered option contract clearly outlined the strike price and expiration date.
  6. While covered options are less volatile, they also limit potential gains if the stock price soars.
  7. The brokerage platform offered educational resources to help clients understand covered options.
  8. He carefully analyzed the underlying asset before entering into a covered option agreement.
  9. Covered options can be a useful tool for income generation within a defined risk profile.
  10. Financial advisors often recommend covered options for clients seeking a balance between income and risk.

FAQs About the word covered option

a put or call option backed by the shares underlying the option

No synonyms found.

No antonyms found.

The investor decided on a covered option strategy to generate income while limiting downside risk.

Since she wasn't bullish on the stock price, she chose a covered option to capitalize on any premium received.

The covered option offered a more conservative approach compared to riskier options strategies.

By selling a covered option, he gave up some potential upside profit in exchange for a guaranteed premium.