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 ?
PowerShares S&P 500 Buy Write (PBP) was the poorest performer, at a one-year return of 9.
ROLE: Hanks PAGE-TURNER: Reader at Waterstone's is happy with her buy WRITE ON: Dan Brown at New York launch
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.