FT MarketWatch

Overwriting

Strategy of selling Call or Put options in quantity, hoping that they will not be exercised. Option writers do this when they suspect the underlying is incorrectly valued, and so the buyer will let the options expire and the Writer will simply earn Option premiums, but this is a risky strategy.

Related Terms: 14 Buy, Call, Exercise, Inc., Option, Option premium, Option writer, Put, Put option, Quant, Risk, Sell, Write, Writer
Other Related Pages: Category: Options Starting With: O
Additional Related Terms: 10-Q, 10-K, Adjustable rate, Accreted value, Accrual of discount, Amortization of premium, Amortized value, At par, All or any part, At best