Buy write

Buy write

See also Covered Call.

Buy-and-Write Strategy

An investment strategy in which an investor writes an option while holding an equal and opposite position on the underlying asset. A buy write call option occurs when the investor owns the underlying asset and writes a call so that the underlying is on hand to sell to the option holder if the option is exercised. A buy write put option occurs when the investor writes a put has enough cash to cover the strike if the put is exercised. It is thought that utilizing buy-and-write strategy is a beneficial tactic as the investor may profit from the option premium. See also: Covered option.
References in periodicals archive ?
The CBOE NASDAQ-100 Buy Write Index assumes that call options are written on the third Friday of each month, held until their expiration, and exercised options are settled in cash.
NEW YORK, July 25 /PRNewswire/ -- The American Stock Exchange(R) (Amex(R)) today began trading Morgan Stanley Strategic Total Return Securities Exchangeable for a Cash Amount Based on the CBOE Dow Jones Industrial Average Buy Write Index.
A buy write is a combination position in which the owner of a stock sells a call option on it.
If the pen you buy writes red, then you'll win two tickets to a hilarious night out at a top comedy venue and the prize includes hotel accommodation and train travel to and from the venue.