put to seller(redirected from Puts To Seller)
Put to seller
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Put To Seller
Informal; to exercise a put option. The "seller" in this case is the option seller (writer), not the seller of the underlying (option holder). To put to seller especially applies when the put is in the money and the writer must purchase the underlying at a higher price than the current fair market value. For example, the strike price in a put may be double the market value when the option is exercised. The writer must then pay the holder the strike price rather than fair market value.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
put to seller
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.