covered put means: An option that the writer of the put position is also short the stock in question or has made a deposit, but not in cash Account, cash, or cash equivalents equaling the exercise price for the option. Because money and stock are already saved, this reduces the risk for option writers. The event The holder of the put If the author decides to exercise this option, his risk is greater than it would have been otherwise. An option to be covered or uncovered. (in Stock Market Dictionary)
Home » What does covered put mean in stock market?