In and Out --> In and Out of Short Positions --> Covering
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Basic Trading
Long & Short Positions
360° of Profitability
ChartBending
Option Anatomy
Picture = 1000 Words
Calls - Part I
Calls - Part II
Puts - Part I
Puts - Part II
Option Behavior
Intrinsic Value Behavior
Time Value Behavior
Time Value & Decay
Time Value & Implied Volatility
Time Value & Stock Price
Decision Making
P&L From Changes in Stock Price
P&L From Time Decay
P&L From IV Changes
Greeks
Delta - Part I
Delta - Part II
Gamma
Theta
Vega
Summary
Option Spreads
Vertical Spreads
Long Call Vertical
Short Put Vertical
Short Call Vertical
Long Put Vertical
Calendar Spreads
Long Call Calendar
Short Call Calendar
Straddles & Strangles
Long Straddle
Short Strangle
Diagonal Spreads
Long Call Diagonal
Short Call Diagonal
In & Out
In & Out of Long Positions
Exercise I
Exercise II
Profit Sooner
Profit Bigger
Let It Expire
In & Out of Short Positions
Assignment
Covering
Let It Expire
Synthetics
Trading Efficiently
Powerful Alternatives
"Covering" means buying to close a short position. If you are short an option, you can simply cover it (i.e., buy it back) for the current market price. That eliminates the position. Simple.