put to seller

Put to seller

Exercise a put option; require that the option writer to purchase the stock at the strike price.

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.

put to seller

See put.

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.