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Derivatives

Covered Call Option Writing

In this particular trading approach, the investor maintains ownership of a security for a prolonged period while also selling a call option on that same security. This allows for potential profits through the collection of premiums.

Related terms

Initial Margin

Understand the meaning and definition of Initial Margin in the context of stock market, trading, and investments.

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Basis

Understand the meaning and definition of Basis in the context of stock market, trading, and investments.

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Contract Month

Understand the meaning and definition of Contract Month in the context of stock market, trading, and investments.

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Deliverable Grades

Understand the meaning and definition of Deliverable Grades in the context of stock market, trading, and investments.

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Customer Margin

Understand the meaning and definition of Customer Margin in the context of stock market, trading, and investments.

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Long Hedge (Futures)

Understand the meaning and definition of Long Hedge (Futures) in the context of stock market, trading, and investments.

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