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covered call

definition

A contract for a call option that is written by an investor who holds a position in the underlying asset for the purpose of locking in the cost of delivering the shares if the option holder chooses to exercise the option. Compare to Covered Put. See Naked Option. See Grantor.

Related Terms

 • Buy and Write  • Uncovered Call  • covered  • Graduated call writing  • uncovered option  • covered put  • grantor  • naked option