Overwrite
A type of covered-call strategy that consists of writing call options on stocks that the writer already owns to generate maximum current income from options premiums and dividends. Investopedia Says:
The covered-call options strategy is achieved either by simultaneously purchasing the shares and writing options (known as a "buy-write") or by writing the options on shares that the writer already owns (the overwrite).
Usually an investor with a market opinion of neutral to slightly bullish will employ this option writing strategy. Related Terms:
Buy-Write
Call option
Covered Call
Derivative
Option
Underlying |