Method used by foreign exchange traders which involves the sale of large amounts of put or call options. Generally, the seller will be hoping the buyer chooses not to exercise the options purchased. Overwriting is seen when option writers believe that an options Underlying security is valued incorrectly. So long as the buyer doesn't exercise the option, the seller will make a profit on the premiums sold, but this strategy comes with a significant degree of risk.
Browse by Subjects
credit union
cost behaviour pattern
long term capital gains
break even chart
short dated bill