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has gloss | eng: Options writing is a term used to describe any option trading strategy that involves selling options. The primary objective in writing options is to earn the premium paid by the option buyer. An option writer sells options intending to profit from the decline of extrinsic value on options, referred to as time value. If the option expires without being exercised, the writer keeps the full amount of the premium. If the option buyer exercises the option, however, the writer must pay the difference between the market value and the exercise price. |
lexicalization | eng: Options writing |
instance of | c/Options |
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