Writer (redirected from Writers)

Writer

The seller of an option, usually an individual, bank, or company that issues the option and consequently has the obligation to sell the asset (if a call) or to buy the asset (if a put) on which the option is written if the option buyer exercises the option.

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writer

The person who creates an option by selling an option contract in an opening transaction. An investor may be the writer of a call or a put. See also naked writer.

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Writer. In the options market, a writer is someone who sells put or call options, an activity known as writing a call or writing a put.

Unlike the buyer, or holder, of an option, who can exercise an option or let it expire, as the writer you must meet the terms of the contract if the option is exercised and assigned to you.

You collect a premium for selling the option, which may provide a profit if the option expires worthless, and you always have the right, before exercise, to buy an offsetting contract and end your obligation to buy or sell.