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writer
(redirected from Option writer)

   Also found in: Dictionary/thesaurus, Financial, Encyclopedia, Wikipedia 0.01 sec.
See: amanuensis


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A futures contract gives the holder the right and the obligation to buy or sell, which differs from an options contract, which gives the buyer the right, but not the obligation, and the option writer (seller) the obligation, but not the right.
The increased physical buying and rising platinum forward rates initiated a price move back above $1,200 an ounce, forcing one large option writer to purchase metal to delta hedge its position.
They also note that option writers should be compensated for bearing the risk of shocks in volatility.
 
 
 
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