Covered Straddle

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Definition: Covered Straddle

Covered Straddle
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Full Definition of 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 owns. A covered straddle is not a true covered position, since assignment for the short put would actually require additional stock.

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https://payrollheaven.com/define/covered-straddle/
Modern Language Association (MLA):
Covered Straddle. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/covered-straddle/.
Chicago Manual of Style (CMS):
Covered Straddle. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/covered-straddle/ (accessed: April 19, 2024).
American Psychological Association (APA):
Covered Straddle. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/covered-straddle/

Definition Sources

Definitions for Covered Straddle are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.