Option covered open position trading is an option trading strategy, which involves holding a corresponding number of underlying assets when selling option contracts. There are two main forms of this strategy: Covered Call and Covered Put.

1. Covered Call:

- In the covered call strategy, investors hold a certain number of underlying assets (usually stocks) and sell a corresponding number of call option contracts. The number of underlying assets for each call option is usually 1 shares.

- This strategy enables investors to hold a certain position in the underlying assets, and at the same time, obtain additional royalty income by selling call options. If the option is not exercised, the investor can keep the underlying assets and the royalties received.

2. Covered Put:

- In the covered put strategy, investors hold a certain number of underlying assets and sell a corresponding number of put option contracts. The number of underlying assets of each put option is usually 1 shares.

- The purpose of this strategy is to hedge the loss through the proceeds of put options when the underlying asset price falls. If the option is not exercised, the investor retains the underlying assets and the royalties received.

The features of option covered open position trading include:

- cost reduction: the cost of holding the underlying assets can be reduced by selling options to obtain royalties.

- collect royalty: the seller gets the royalty of the call or put option as the income from selling the option.

- limited income: although the cost is reduced, the income is relatively limited. In the covered subscription strategy, the investor's income is limited by the rise of the underlying assets; In the put strategy, investors' income is limited by the decline of the underlying assets.

- finite risk: Due to holding a corresponding number of underlying assets, the risk of the strategy is relatively low. However, when the underlying asset price drops sharply, it may still face losses.

investors need to consider market expectation, risk preference and their views on the underlying assets when choosing the option open strategy. This strategy is suitable for investors who want to gain additional income by selling options while holding the underlying assets.