grantor (redirected from grantors)

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.

See also: Call, Derivative, Naked Option, Premium, Put, Risk, Strike Price, Writer

---

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.