Sentences with phrase «writer of an option»

(Institutional writers of options will deal directly with the clearing house.)

Exercise and assignment of options, particularly American - style, may lead to substantial losses especially if a writer of the option is «uncovered.»

As a writer of an option, you have no control over whether or not a contract is exercised.

In the case of regulated, exchange - traded options, the writer of an options contract is obliged to maintain a margin with their broker, and the broker is obliged to maintain a margin with the clearing house.

While a buyer of an option pays the premium and buys the right to exercise his option, the writer of an option is the one who receives the option premium and therefore is obliged to sell / buy the asset if the buyer exercises it on him.

The writer of an option who also holds a position that is equivalent to, but on the opposite side of the market from the short option position.

Options Trading involves two parties — the buyer of the option and the seller or writer of the option.