Writer

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Writer

The seller of an option, usually an individual, bank, or company that issues the option and consequently has the obligation to sell the asset (if a call) or to buy the asset (if a put) on which the option is written if the option buyer exercises the option.

Option Writer

One who originally sells an option contract. In exchange for the premium, the option writer takes on an obligation to buy or sell (depending on the type of option) the underlying asset at the discretion of the option holder. For example, in a call, the option writer must sell the underlying asset to the option holder if the holder decides to exercise the option. If the option writer does not already have a long position in the underlying asset, he/she must obtain one so as to sell the position and fulfill the contract.

writer

The person who creates an option by selling an option contract in an opening transaction. An investor may be the writer of a call or a put. See also naked writer.

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.

Writer.

In the options market, a writer is someone who sells put or call options, an activity known as writing a call or writing a put.

Unlike the buyer, or holder, of an option, who can exercise an option or let it expire, as the writer you must meet the terms of the contract if the option is exercised and assigned to you.

You collect a premium for selling the option, which may provide a profit if the option expires worthless, and you always have the right, before exercise, to buy an offsetting contract and end your obligation to buy or sell.

References in classic literature ?

His very vivid and active imagination enables him not only to humanize animal life with remarkable success, as in the prose 'Jungle-Books,' but to range finely in the realms of the mysterious, as in the short stories 'They' and 'The Brushwood Boy.' Of short-stories he is the most powerful recent writer, as witness 'The Man Who Would Be King,' 'The Man Who Was,' 'Without Benefit of Clergy,' and

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Concerning the old carpenter who fixed the bed for the writer, I only mentioned him because he, like many of what are called very common people, became the nearest thing to what is understandable and lovable of all the grotesques in the writer's book.

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The writer here interrupts an Iliadic passage (to which she returns immediately) for the double purpose of dwelling upon the slaughter of the heifer, and of letting Nestor's wife and daughter enjoy it also.

It is plain therefore that the audience for whom the "Odyssey" was written was one that would be unlikely to know anything about the topography of the Peloponnese, so that the writer might take what liberties she chose.

{36} The lines which I have enclosed in brackets are evidently an afterthought--added probably by the writer herself--for they evince the same instinctively greater interest in anything that may concern a woman, which is so noticeable throughout the poem.

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"So as not to wake me," replied the Writer of Fables, a holy calm brooding upon his beautiful face.

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which is proposed by him will do as well as any other); for a writer of fiction, and especially a writer who, like Plato, is notoriously careless of chronology, only aims at general probability.

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Such rarae aves should be remitted to the epitaph writer, or to some poet who may condescend to hitch him in a distich, or to slide him into a rhime with an air of carelessness and neglect, without giving any offence to the reader.

It is admirably remarked by a most excellent writer, that zeal can no more hurry a man to act in direct opposition to itself, than a rapid stream can carry a boat against its own current.

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The lama would have been more annoyed than the priest had he known how the bazar letter- writer had translated his phrase 'to acquire merit

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The story of "old Prue," in the second volume, was an incident that fell under the personal observation of a brother of the writer, then collecting-clerk to a large mercantile house, in New Orleans.

That letter was for some time in the writer's hands.

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