covered option (Meaning)
Wordnet
covered option (n)
a put or call option backed by the shares underlying the option
Synonyms & Antonyms of covered option
No Synonyms and anytonyms found
covered option Sentence Examples
- 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.
- The covered option contract clearly outlined the strike price and expiration date.
- While covered options are less volatile, they also limit potential gains if the stock price soars.
- The brokerage platform offered educational resources to help clients understand covered options.
- He carefully analyzed the underlying asset before entering into a covered option agreement.
- Covered options can be a useful tool for income generation within a defined risk profile.
- 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.
