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Tag: covered calls and puts

An option writer meticulously navigating financial waters, balancing risk and reward by selling options amidst a sea of securities

Option Writing: Understanding the Role of the Option Writer and Strategies to Generate Income

October 10, 2025 FinanceFacts101 Financial Education

Introduction to Option Writers An option writer is an individual or entity that sells options, granting buyers the right to buy (call) or sell (put) a security at a specified price within a specific time frame. In return for this service, the writer receives a premium paid by the buyer

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Understanding Outright Options Trading: A Comprehensive Guide for Institutional and Retail Investors

April 30, 2025 FinanceFacts101 Business Finance

Introduction to Outright Options An outright option refers to an individual option contract that is bought or sold as a standalone investment. Unlike other options strategies such as spreads or exotic options, an outright option only includes one option with a single underlying security. They are traded on various exchanges

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Understanding Naked Options: Risks and Strategies for Uncovered Options Trading

March 19, 2025 FinanceFacts101 Business Finance

Introduction to Naked Options In finance and investment, a naked option refers to an option selling strategy where the seller does not own any underlying securities or has not set aside sufficient funds to fulfill the obligation should the option be exercised. This approach comes with significant risk for the

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FinanceFacts101.com is dedicated to providing educational resources on financial literacy. All content and materials on this website are for informational and educational purposes only and do not constitute financial advice. We encourage our readers to conduct their own research and consult with a qualified financial professional before making any financial decisions.