Encyclopedia of Investment Terminology

Return to Stock Market and Investment Encyclopedia Index

Covered Call

A covered call is a trading strategy which involves the sale of call options on an asset that the investor already owns. If the investor acquires the asset and writes a call at the same time the strategy is called a buy-write, whereas if the asset had been previously acquired the strategy is called an overwrite.


Return to Index

Copyright 2008 StockDic.com
All Rights Reserved.