[This message was posted by Yves-Eric MARTIN of SG <[email protected]> 
to the "Derivatives" discussion forum at http://fixprotocol.org/discuss/15. You 
can reply to it on-line at http://fixprotocol.org/discuss/read/95394b51 - 
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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


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