Definitions for "Covered Writing"
The sale of an option against a position in the underlying futures contract.
In the case of call writing, covered means having a holding of shares at least equal to that implied by the short call option position, and in the case of put writing, covered means having a cash sum sufficient to take up the underlying security if assigned on the short put position.
Writing or selling Calls or Puts for the equivalent number of underlying financial assets already owned.