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Investing Glossary:
Covered call
Copyright 2010,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
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| Definition: |
| A short Call option position in which the writer owns the number of Shares of the underlying Stock represented by the option contracts. Covered calls generally limit the Risk the writer takes because the stock does not have to be bought at the Market price, if the holder of that option decides to Exercise it.
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