|
WordNet-Online
Definitions from WordNet | ||||
Definitions from the WebCovered OptionDescription:A covered option refers to a financial investment strategy in which an investor owns the underlying asset and sells a call option on that asset. This strategy is also known as a covered call. By selling the call option, the investor generates additional income, while still retaining ownership of the asset. Senses and Usages:Sense 1 - Financial Investment Strategy:In the realm of finance, a covered option is a strategy employed by investors to generate additional income from the underlying assets they own, typically stocks. The investor sells a call option on the owned stock, allowing others to purchase it at a predetermined price. This strategy can be used to enhance investment returns and manage risk. Example Sentence:John is employing a covered option strategy by selling call options on his Apple stock to generate additional income. Sense 2 - Insurance:In the field of insurance, a covered option refers to an insurance policy that includes specific events, damages, or losses covered by the policy. These covered options provide protection to policyholders against particular risks or liability. Example Sentence:The homeowner's insurance policy for Jane's house includes a covered option for damages caused by fire. Related Products:To further explore covered options and related financial strategies, you can browse the following products on Amazon: | ||||
coverages-and coverages coverall coveralls covered covered bridge covered couch covered dish covered option covered smut covered stadium covered stand covered wagon coverege coverge coverged covering
|