- The person who sells an option in return for a premium and is obligated to perform when the holder exercises his right under the option contract. Also referred to as the option seller. Chicago Board of Trade glossary————One who sells an option. A "writer" (or grantor) obligates himself to deliver the underlying futures position to the option purchaser, should he decide to exercise his right to the underlying futures contract position. Option writers are subject to margin calls because they may have to produce the long or short futures position. A call writer must supply a long futures position upon exercise, and thus receive a short futures position. A put writer must supply a short futures position upon exercise, and thus receive a long futures position. The CENTER ONLINE Futures Glossary————The party that sells an option contract.————The seller of an option, usually an individual, bank, or company that issues the option and consequently has the obligation to sell the asset (if a call) or to buy the asset (if a put) on which the option is written if the option buyer exercises the option. Bloomberg Financial Dictionary————A seller of an option. See also grantor. Chicago Mercantile Exchange Glossary————Person who executes the opening sale of an option. Dresdner Kleinwort Wasserstein financial glossary————An opening seller of an options contract. LIFFE————The issuer of a covered warrant is sometimes referred to as the writer. London Stock Exchange Glossary
* * *writer writ‧er [ˈraɪtə ǁ -ər] noun [countable]someone who sells option S (= the right to buy shares etc at a particular price at a later date) for shares etc that they do not own
• a writer of property and casualty policies
* * *writer UK US /ˈraɪtər/ noun [C]► someone who writes books, articles, etc.: »
a political writer► FINANCE, STOCK MARKET the seller of an options contract (= right to buy or sell shares, etc. on or before a particular future date)
Financial and business terms. 2012.