covered option

1. 1.

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

   Broaderoption

Questions about covered option

What does covered option mean?

covered option means "a put or call option backed by the shares underlying the option".

Is covered option a common word?

covered option is banded "Rare" — specialist or archaic — most readers will not have met it. The band comes from how often the word appears in a large corpus of everyday English, not from an editor's impression.