Chapter 02 · Section 2.1
A covered call position (representation)
Which of the following propositions below represent a covered call position?
a) Short 1 IBM Dec 104 call and Long 1 IBM Dec 104 put.
b) Short 1 IBM Dec 104 call and Long 100 shares of IBM stock.
A short covered call is a combination with a short option and a long position in the associated underlying.