Graduated call writing

Definition

Selling covered call options at incrementally rising exercise prices, so that as the price of the underlying stock rises and the options are exercised, the seller receives a higher average price than the original exercise price.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University


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Managing underwriter
The leading firm in an underwriting group, which originates the deal and acts as an agent for the group.

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