(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 ("short cover"). In rare cases, a person who makes this sort of error will actually drive the spot price much higher than it would have gone ordinarily.
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 ("short cover"). In rare cases, a person who makes this sort of error will actually drive the spot price much higher than it would have gone ordinarily.
Naked option writing is quite risky because you can make only a limited amount of money. yet the risks are high.
by Abu Yahya April 15, 2010
Get the naked option mug.An alternative dish for those who choose not to participate in the consumption of meat and meat products
by lord blythe March 10, 2009
Get the Vegetarian option mug.To poop.
Typically you are given two options, but you can always choose to poop instead.
This option is always available no matter what happens. It's almost never a good option to take, but it is important to know it's always there.
Typically you are given two options, but you can always choose to poop instead.
This option is always available no matter what happens. It's almost never a good option to take, but it is important to know it's always there.
by TheSwineFlew January 24, 2011
Get the The Third Option mug.by wiki*dia May 19, 2013
Get the optional fact mug.Stock options are contracts you can buy or sell where you make a bet on what a stock's price will be at a certain time in the future (the strike and expiration). This allows you to massively leverage your investment since one contract holds 100 stocks.
People who invest in options like to use words like "gamma", "hedging", "condors", "premium" and "IV" to seem smart. In reality, most options traders are autists who consistently lose money and brag about it on wall street bets.
People who invest in options like to use words like "gamma", "hedging", "condors", "premium" and "IV" to seem smart. In reality, most options traders are autists who consistently lose money and brag about it on wall street bets.
Degenerate: "I just went long 29 stock option calls on TSLA at the 690$ strike expiring first weekly with a premium of 1.8$ per share and 400 delta."
Person: "Why can't you just say "I just made 29 bets that Tesla will go above 690$ by next Friday, I paid 180$ per bet and will make 400$ per dollar the stock moves"?"
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Degenerate: "I lost everything..."
Person: "Post it on r/wallstreetbets, you gotta get that Reddit karma!"
Person: "Why can't you just say "I just made 29 bets that Tesla will go above 690$ by next Friday, I paid 180$ per bet and will make 400$ per dollar the stock moves"?"
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Degenerate: "I lost everything..."
Person: "Post it on r/wallstreetbets, you gotta get that Reddit karma!"
by ScritchWasTaken December 29, 2020
Get the Stock option mug.When a choice someone makes has no logical or acceptable reason why it was made and you have to question how it even became an option before said choice was made.
John: That lady at the gym with a mustache can bench 300.
Larry: She has a mustache? How is that even an option?
Potato Bob: So yea, I got a pet Dandelion the other day.
Larry: ...How is that even a option? Of all the pets you could choose from you got a pet plant. You could have got something normal like a cat, a dog, a bird or even something a little different like a ferret or pig but you chose a motherfucking Dandelion? QUESTION FUCKING MARK. THE FUCK IS YOU TALM BOUT?
Larry: She has a mustache? How is that even an option?
Potato Bob: So yea, I got a pet Dandelion the other day.
Larry: ...How is that even a option? Of all the pets you could choose from you got a pet plant. You could have got something normal like a cat, a dog, a bird or even something a little different like a ferret or pig but you chose a motherfucking Dandelion? QUESTION FUCKING MARK. THE FUCK IS YOU TALM BOUT?
by Zebra the Moose April 19, 2017
Get the how is that even an option? mug.Advice given by friends, colleagues, and a associates who are sick and tired of hearing another's incessant whining, bitching and moaning over their blown out of proportion, good-time-ruining problems.
On par with "Quit yer bitchin" and "Get the sand out of your vagina"
On par with "Quit yer bitchin" and "Get the sand out of your vagina"
"I can't seem to get a date. Girls don't like me, I'm awkward, if I can't get a girl, I must be a loser of some kind. I'll never get laid, or a girlfriend, or married, etc etc etc."
"Hey, you know who doesn't have to worry about girls? The dead. Maybe you should kill yourself. I'm beginning to think that suicide is your only option. This way, you won't have to worry about getting laid, and we don't have to keep listening to your stupid complaints.
"Hey, you know who doesn't have to worry about girls? The dead. Maybe you should kill yourself. I'm beginning to think that suicide is your only option. This way, you won't have to worry about getting laid, and we don't have to keep listening to your stupid complaints.
by Pharoah Ashseti June 15, 2008
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