Skip to main content
Trading Terms

Covered Write

When writing a call against a long position in the underlying stock, the goal is to receive a premium in order to gain additional return on the common stock or provide some protection against a decrease in the stock's value. This protection is limited to the premium amount minus any transaction costs. By taking this step, the writer is able to potentially increase their gains or mitigate potential losses.

Related terms

Currencies

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

MORE
Defensive Stock

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

MORE
Order Book

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

MORE
Outlier

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

MORE
Window

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

MORE
Market Sentiment

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

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91