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Derivatives
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Re: Exact usage of Tag203:CoveredOrUncovered for Options
John Harris / BondMart Technologies, Inc.
4 Feb 2011 5:30AM ET 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
John Harris / BondMart Technologies, Inc. 4 Feb 2011 5:30AM ET
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