In a Covered Option Strategy:
A)one Option Is Issued or Bought

In a covered option strategy:

A) one option is issued or bought per unit of the asset or liability generating the risk exposure.
B) the option's delta ( $\Delta$ ) is first calculated and then options in the quantity 1/ $\Delta$ are issued or bought per unit of the asset or liability.
C) a call option is bought and a put option is written to hedge risk.
D) the risk of a call option is covered by buying or selling a put option.