Buy-Write

Business, Legal & Accounting Glossary

Definition: Buy-Write


Buy-Write


Full Definition of Buy-Write


An approach used by investors to profit from the price at which an option trades by originating and selling an option contract while they hold an opposite and equal position on the asset that gives value to the security. When an investor owns the asset underlying the option and writes a call to make the asset available for sale to the owner of the option if the option is exercised, it is termed a buy-write call option. When an investor writes a put with enough cash to cover the sale if the put is exercised, it is termed a buy-write put option. Also called covered option.


Cite Term


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https://payrollheaven.com/define/buy-write/
Modern Language Association (MLA):
Buy-Write. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/buy-write/.
Chicago Manual of Style (CMS):
Buy-Write. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/buy-write/ (accessed: April 19, 2024).
American Psychological Association (APA):
Buy-Write. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/buy-write/

Definition Sources


Definitions for Buy-Write are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.