Escrow Receipt
A bank guarantee that an option writer has the underlying security on deposit and that the underlying security is readily available for delivery if the option is exercised.
Investopedia Commentary
The use of escrow accounts and receipts provides further evidence and security that the securities are available to complete the transaction.
Related Links
Options Basics Tutorial
See also: Cover, Escrow, Escrow Agreement, Exercise, Option, Security, Underlying, Writer