investor www.Investor.Net

Option writer definition

Option writer is the person who sells Call option or Put option. Option writer gets a cash payment for writing the contract - called Option premium.

In exchange, Option writer takes on an obligation to sell shares at a specific price at specific future date (if Option writer sold Call option), or an obligation to buy shares at a specific price at specific future date (if Option writer sold Put option).


Investor Dictionary

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z  


  



© Copyright 2012 Investor.Net