# Covered call and buy-write strategy (so also mostly in German, more rarely covered subscription option)

- Canonical URL: https://www.gerhardmerk.de/covered-call-and-buy-write-strategy-so-also-mostly-in-german-more-rarely-covered-subscription-option
- Post ID: 590064
- Modified: 2023-07-25T21:01:26+00:00
- Language: en

## Definition

A special option strategy as a combination of buying securities with an option. The writer purchases securities, such as a certain number of shares, and sells a call option on this underlying (the selling of a call option while simultaneously holding an equivalent position in the underlying. If the option expires unexercised, the writer keeps the premium. If the holder exercises the option, the stock must be delivered, but, because the writer already owns the stock, risk is limited). - See call option, covered. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0