option vs covered option

covered option vs option

option and covered option both are nouns.

Word	Noun	Adjective	Verb	Adverb
option	Yes	No	No	No
covered option	Yes	No	No	No

As nouns, covered option is a hyponym of option; that is, covered option is a word with a more specific, narrower meaning than option:

option: the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited
covered option: a put or call option backed by the shares underlying the option

Other hyponyms of option include naked option, call, call option, put, put option, straddle, incentive option, incentive stock option, stock option, lock-up option, Bermudan option.

option (noun)	covered option (noun)
the act of choosing or selecting	a put or call option backed by the shares underlying the option
one of a number of things from which only one can be chosen
the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited

Difference between option and covered option

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