Glossary - Covered Call / Covered Call Writing
An open short covered call could be offset by long stock or a long coveredcall.aspx">covered call could be offset by long stock or a long put or a short stock position. This insures that if the owner of the option exercises, the writer of the option will not have a problem fulfilling the [delivery.aspx">write.aspx">writer of the option will not have a problem fulfilling the [delivery requirements.



Glossary definition courtesy of Glenn R. Pafumi, CFA at OptionTraderOne
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