Similarly, the pool of outstanding ETF shares can be dried up if one of the fat cats swaps back creation units for underlying shares in the basket. (fool.com)
In this strategy, the put writer collects a premium for accepting the obligation to buy underlying shares at the strike price. (investopedia.com)
Because these strategies are executed without underlying shares on or cash on hand to buy shares, option writers may be subjected to losses far greater than premiums received. (investopedia.com)