covered writer

covered writer definition - business

covered writer

The seller or writer of a call option who owns the underlying asset that may be required for delivery. Covered writers are usually conservative investors seeking extra current income. See also buy-and-write strategy.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.