Definition of option writer in English English dictionary
The seller of an option contract who is obligated to meet the terms of delivery if the option owner exercises his or her right This seller has made an opening sale transaction, and has not yet closed that position
The seller of either a call or put option The option writer receives payment, called a premium, and is obligated to buy or sell the underlying security at a specified price, within a certain period of time, if called upon to do so