Writer

Dictionary Says

Definition of 'Writer'

The seller of an option who collects the premium payment from the buyer.
Investopedia Says

Investopedia explains 'Writer'

For example, a writer holds a short position on a call option. If the call option is exercised, then the writer has to sell the underlying stock at the strike price of the option. Conversely, if you are the writer of a put option, you are said to be long, and must purchase the underlying stock at the particular price.

Being a writer is relatively risky - especially on a naked position. This technique should not be used by those who are new to option markets.

Related Definitions

Search results for

'Writer'

  • Becoming A Financial Writer

    http://www.investopedia.com/articles/financialcareers/07/financial-writer.asp
    Becoming A Financial Writer. January 05 2010 | Filed Under ยป Careers ... and rewarding
    field. What does a Financial Writer do? Before we delve ...
  • Does the seller (the writer) of an option determine the details of ...

    http://www.investopedia.com/ask/answers/05/051605.asp
    ... Does the seller (the writer) of an option determine the details of the option
    contract? The quick answer is yes and no. It all depends ...
  • Who Backs Up The FDIC?

    http://www.investopedia.com/articles/economics/08/fdic-insurance-dif.asp
    ... Ana Gonzalez Ribeiro. Ana Gonzalez Ribeiro. Ana Gonzalez Ribeiro holds an MBA with
    honors in Finance and works as a personal finance / business writer. ...
  • 5 Equity Derivatives And How They Work

    http://www.investopedia.com/articles/optioninvestor/10/equity-derivatives.asp
    ... moves against them. On the other hand, an option writer (the seller of an
    option) takes on a higher level of risk. For example, if ...
  • "Temporary" Taxes That Stuck

    http://www.investopedia.com/articles/tax/10/temporary-taxes-that-stuck.asp
    ... Ana Gonzalez Ribeiro. Ana Gonzalez Ribeiro. Ana Gonzalez Ribeiro holds an MBA with
    honors in Finance and works as a personal finance / business writer. ...
  • Finding Undiscovered Stocks

    http://www.investopedia.com/articles/analyst/122001.asp
    ... The absence of an "equity kicker" significantly decreases the risk that the
    writer is hyping the stock to maximize his or her income. ...
  • Saving Your Home From Foreclosure

    http://www.investopedia.com/articles/pf/07/avoid_foreclosure.asp
    ... Pooja Dave. Pooja Dave. Pooja Dave is a content writer/developer cum research
    associate at InfoAnalytica, India. She also works as ...
  • Consumer Protection Laws You Need To Know

    http://www.investopedia.com/articles/pf/10/know-your-consumer-protection-laws.asp
    ... Ana Gonzalez Ribeiro. Ana Gonzalez Ribeiro. Ana Gonzalez Ribeiro holds an MBA with
    honors in Finance and works as a personal finance / business writer. ...
  • Life Insurance: How To Get the Most Out Of Your Policy

    http://www.investopedia.com/articles/pf/06/lifeinsurance.asp
    ... Pooja Dave. Pooja Dave. Pooja Dave is a content writer/developer cum research
    associate at InfoAnalytica, India. She also works as ...
  • Can Regular Investors Beat The Market?

    http://www.investopedia.com/articles/trading/10/beat-the-market.asp
    ... Ana Gonzalez Ribeiro. Ana Gonzalez Ribeiro. Ana Gonzalez Ribeiro holds an MBA with
    honors in Finance and works as a personal finance / business writer. ...

Related Articles

Partner Links