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grantor
(redirected from grantors)

   Also found in: Dictionary/thesaurus, Legal 0.07 sec.
Grantor
A seller of either call or put options who profits from the premium for which the options are sold. Synonymous with option writer.

Notes:
For example, say a writer has sold a call option, or assumed a short position in a call option. If the call option is exercised, then the writer has to sell the underlying stock at the strike price Conversely, if the writer sells a put option, he or she is said to be long, and must purchase the underlying stock at the strike price. Being a writer is relatively risky--especially on a naked position. This technique should not be used by those who are new to option markets.


Grantor
A trader in the options market who makes premium income by selling options.

grantor
An investor who sells short a call option or a put option. The grantor of a call option agrees to sell stock at a fixed price and the grantor of a put option agrees to buy stock at a fixed price.

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