Sentences with phrase «selling a call option obligates»

Not exact matches

The seller of a call option may be obligated to fulfill the terms of the contract and sell the underlying stock at a specific price in exchange for the premium they have received.

If that buyer decides to exercise his right to buy the stock at $ 50 / share then the person who sold him the call options is obligated to sell 100 shares of ABC stock to him at $ 50 / share.

Likewise, the seller of call options is obligated to sell stock at a certain price by a certain date if the buyer chooses to exercise his right.

Likewise, the seller of a call option is obligated to sell stock at a certain price by a certain date if the buyer chooses to exercise his right.

If that buyer decides to exercise his right to buy the stock at $ 35 / share then the person who sold him the call option is obligated to sell 100 shares of XYZ stock to him at $ 35 / share.

The seller of a call option, also referred to as a writer, is obligated to sell the shares of the underlying stock at the strike price if a buyer decides to exercise the option to buy the stock.

The Risk: Writing OTM covered call provides the writer with options income and the writer is only obligated to sell the underlying security if the stock closes above the strike price at the time of expiration.

The seller of the option who may be obligated to buy (put writer) or sell (call writer) the underlying interest if assigned by the option buyer.

For example, because a Fund must maintain a secured position with respect to any call option on a security it writes, a Fund may not sell the assets, which it has segregated to secure the position while it is obligated under the option.