DEFINITION of 'Overwrite'

A type of covered-call strategy that consists of writing call options on stocks that the writer already owns to generate maximum current income from options premiums and dividends.

BREAKING DOWN 'Overwrite'

The covered-call options strategy is achieved either by simultaneously purchasing the shares and writing options (known as a "buy-write") or by writing the options on shares that the writer already owns (the overwrite).

Usually an investor with a market opinion of neutral to slightly bullish will employ this option writing strategy.
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