Options and FuturesHolder Offset Open Outcry Buy On Opening Price Discovery Futures Contract
Uncovered call writing
A knowledgeable professor in finance would explain that a short call option refers to a position where the writer does not hold an equal position in the underlying security of the option contracts. This means that the writer has not invested in the asset, but has instead sold the option to someone else. This strategy is often used to generate income or to hedge against potential losses. It is important to note that the writer of a short call option is obligated to sell the underlying security if the option is exercised by the buyer.
Related terms
Understand the meaning and definition of Holder in the context of stock market, trading, and investments.
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