Options Glossary

Glossary: Max Covered Return

Last Updated: August 30, 2022

Glossary

Max Covered Return

What Does Max Covered Return Mean in Options Trading?

The max covered return of a position is applicable to net-short options positions and describes the maximum profit possible, in percentage terms, against a capital outlay which fully covers the risk in the position.

Synonyms:
Max Covered Ret.

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