FT MarketWatch

Covered straddle

A Straddle constructed on shares of stock already owned by the holder. A Covered straddle consists of writing a Call and a Put with the same strike price and expiration against stocks that the holder Own. A Covered straddle is not a true covered Position, since Assignment for the short Put would actually require additional stock.

Related Terms: 13 Assign, Assignment, Call, Covered straddle, Cover, Inc., Own, Position, Put, Ratio, Share, Straddle, Short
Other Related Pages: Category: Trading Starting With: C
Additional Related Terms: 10-Q, 10-K, 19c3 stock, Allowance for depreciation, Asset/equity ratio, Accrual of discount, American Stock Exchange, Amortization of premium, Asked price, Asking price