Denotes a put option position in which the writer of the option is simultaneously short in the corresponding share or has received the deposit in cash or cash equivalent required to settle the option. Because the cash or shares have already been fixed, the risk borne by the writer of the option is reduced. If the holder of a put option decides to exercise it, the risk borne by the writer is much more limited than it would be in the case of an uncovered or stand-alone put option.