Position Terms
The parameters that define an ARRANGE covered-call position.
#Core terms
| Term | Economic function |
|---|---|
| Stock Token | Identifies the canonical underlying contract and multiplier state |
| Quantity | Sizes the long exposure and short-call obligation |
| Strike | Defines where retained upside ends |
| Expiry | Defines the option term and terminal observation |
| Premium | Compensates the call writer for the obligation |
#Execution terms
- Gross and net premium in an explicit unit.
- Price source, timestamp, executable size and slippage bound.
- Settlement asset, terminal observation and rounding rule.
- Early-exit, transfer and roll behavior.
- Corporate-action and exceptional-market treatment.
#Terms are obligations
Strike and expiry are not descriptive metadata. Once the short-call exposure exists, changing either requires a close, roll or novation that accounts for the option's current value.