(FINANCE) a call option that is written by a party who possesses none of the underlying stock; a commitment to sell a fixed amount of something at a fixed price, of something one does not happen to have.

Writing an option means selling a certificate that guarantees the holder can buy a traded item for a guaranteed price (strike price). The person who writes the option is betting that the price of the underlying stock will go down (shorting a stock, AKA a short position). If the person writing the option is correct, then she makes money off the sale of the option, but does not have to worry about honoring the option, since it is out of the money and has no intrinsic value.

If the person writing the option is wrong, and the price of the underlying stock goes up, then she must buy the item at the higher spot price specifically to sell it at the low strike price ("

(FINANCE) a type of financial derivative; a certificate that gives the owner the right to buy (or sell) a fixed amount of a specific thing for a specific price (the strike price).

An option to buy something else is called a call option; an option to sell something else is called a put option. An option has a strike price, which is the price at which you are entitled to buy (or sell) the underlying commodity, or stock, or foreign currency, or whatever.

Options allow the owner to speculate in the possibility that market prices will change in a certain direction, without actually spending the value of the underlying item. For example, suppose WTI crude is $85.75/bbl. In order to make $1000 off of a $0.25 increase in the price, you ordinarily would need to own 4000 bbls of crude, which you can't afford. So, instead, you buy a call option for 4000 bbls with a strike price of $85.75/bbl (i.e., exactly what it is now). This option will cost a tiny amount of money. If the price goes up to $86.00/bbl, you don't own the oil, but your options are now worth $1000 to somebody...

totally barbaric, sick, idiotic sport that has two half naked men try to punch the other one until he is uncounscious. some call it "discipline", and "honour". i call it "evolve"

(FINANCE) the situation in which a derivatives trader with a short position is wrong about the behavior of the market. Having sold shares of stock he doesn't own, he is now compelled to buy them at a higher price than he sold them for (in order to reimburse whomever he borrowed the shares from).

If the short position was taken by writing naked options (i.e., issuing call options of stock the trader doesn't happen to have), then the trader has to buy shares of underlying stock in order to honor the options.

It's extremely expensive for traders to have to cover their shorts.

Woburn Padiddle is a game played while in a vehicle, preferably with a mix of boys and girls. The game is based on a 2 and up players, or depending how many people you can cram in a car/truck. With those people in the car, the game objective is to spot a burnt out/broken headlight, fog light, tail light, or any symmetrical lights mounted on the vehicle, and once that broken light is spotted someone has so shout "PADIDDLE" and hit the ceiling of the car/truck they are in. The last person to hit the ceiling has to remove a article of clothing (usually starting with tops/shirts, then work downward). Eventually everyone in the car or truck are naked. But in Woburn the driver of that vehicle has the option to be apart of the game. Usually drivers does not play so they may concentrate on driving, however they still can call padiddle, but do not have to take clothing off.