Covered combination - A strategy in which one call and one put with the same expiration, but different strike prices, are written against each 100 shares of the underlying stock. Example: writing 1 XYZ Jun 50 call and 1 XYZ Jun 55 put, and buying 100 shares of XYZ stock. In actuality, this is not a fully "covered" strategy because assignment on the short put would require purchase of additional stock.
Covered combination : a strategy in which one call and one put with the same expiration, but different strike prices, are written against each 100 shares of the underlying stock. example: writing 1 xyz jun 50 call and 1 xyz jun 55 put, and buying 100 shares of xyz stock. in actuality, this is not a fully "covered" strategy because assignment on the short put would require purchase of additional stock.
Covered combination