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Re: Exact usage of Tag203:CoveredOrUncovered for Options
Yves-Eric MARTIN / SG
4 Feb 2011 6:00AM ET Thank you
Does that means the buy-side:
WISHES to be covered with a position in the underlying instrument
or
IS ALREADY covered with a position in the underlying instrument ?
> The term "covered" applies to short option positions (short meaning you have sold the option). A covered call is a short call combined with a long position in the underlying instrument. A covered put is a short put combined with a short position in the underlying instrument. In each case the position corresponding to the option should be equivalent as to size.
>
> Best,
> John
>
> > Hello,
> >
> > Tag203 has two possible values in the SingleOrderMsg: CoveredOrUncovered
> > But no description on its usage
> >
> > Does any one knows if it it used:
> > 1) By the buy-side to report that they are Covered or not by another already existing position (pure reporting for regulation purpose on some countries?)
> > 2) By the buy-side to ASK the broker to Cover him (like Delta Hedging) ?
> >
> > Thanks for your advise
Re: Exact usage of Tag203:CoveredOrUncovered for Options
Yves-Eric MARTIN / SG 4 Feb 2011 6:00AM ET
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