Option Writer
Definition
The seller of an options contract who receives the premium upfront and assumes the obligation to fulfill the contract terms if the buyer exercises the option.
Example
An option writer selling a covered call collects premium income in exchange for potentially having their shares called away.
Related Terms
Frequently Asked Question
What is an Option Writer?
An option writer (seller) receives premium and assumes the obligation to buy or sell the underlying if exercised. Writers profit when options expire worthless; they lose when options move against them.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.