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Options Glossary - Most Used Terms
Option Writer
The seller of either a call or put option. The seller is obligated to meet the terms of delivery if the option owner exercises his or her right. This seller has made an opening sale transaction, and has not yet closed that position.
See Also:
Option: A contract that gives the owner the right, but not the obligation, to buy or sell a particular asset (the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration) . The contract also obligates the writer to meet the terms of delivery if the contract right is exercised by the owner.
Writer: An investor who so sells an option is called the writer, regardless of whether the option is covered or uncovered.
