Ratio writer

Ratio writer

An option writer who does not own the number of shares required to cover the call options he or she writes.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Ratio Writer

A writer (seller) of a call option contract who does not own a sufficient number of shares of the underlying asset. That is, while some of the calls are covered, the ratio writer sells a certain number of naked options. Ratio writers carry less risk than naked writers but more than sellers who write only covered calls.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved