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Buy write |
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Buy writeSee also Covered Call.Buy write Similar MatchesRation writeRation writeAn investment strategy in which stock is purchased and call options are written on a greater than one-for-one basis; i.e., more calls written than the equivalent number of shares purchased. For example, buying 500 shares of XYZ stock, and writing 6 XYZ Sep 5 calls. Option writerOption writerThe initial 'seller' of an option. He has to fulfil the terms of the option contract if the holder choose to exercise it. So if the holder exercises a call option to buy some shares, the option writer has to deliver the shares. Note that the option writer has an obligation, but no rights. It is not up to him whether the option is exercised. Lead underwriterLead underwriterThe head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. WriteWriteSell an option. Applies to derivative products. WriterWriterA person who makes an opening sale of an option contract. Upon notification of exercise by the option holder (the buyer), the writer is obliged to deliver or take delivery of the underlying instrument (for example, shares, commodities etc). Further SuggestionsUnderwriteUnderwriter underwriter Covered writer Option writer Managing underwriter Write off Write down Variable Ratio Write Ratio writer Underwriters discount Naked writer Covered Straddle Write Buy and write strategy |
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