(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
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Used when to describe something you are referring to without actually letting the adjective you want to use be known. Means simply, a good thing or a bad thing. Used in many ways. It takes skill.
"Dude, did you see that chicks hair? NOT OPTIMAL." or
"OMG, did you see that hot guy just walk by? OPTIMAL."
1) someone just stepped in dog shit. NOT OPTIMAL
2) i just found the perfect dress. OPTIMAL
"OMG, did you see that hot guy just walk by? OPTIMAL."
1) someone just stepped in dog shit. NOT OPTIMAL
2) i just found the perfect dress. OPTIMAL
by nadaaaaa January 16, 2008
Get the optimal 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.Descriptive Noun. First part of a four-part sequence which explains all types of individuals.
An OPTIMIST is a person who doesn't have all the facts.
A PESSIMIST is an optimist who does have all the facts.
A CYNIC is a pessimist who has seen the facts in action.
A PARANOID is a cynic who has FINALLY realized that the facts are after him.
An OPTIMIST is a person who doesn't have all the facts.
A PESSIMIST is an optimist who does have all the facts.
A CYNIC is a pessimist who has seen the facts in action.
A PARANOID is a cynic who has FINALLY realized that the facts are after him.
Johnny the Optimist says, "Gosh, I'm sure that the Congress will make laws for the benefit of the public rather than those wealthy enough to buy a congressman or senator and slap a bar code on their back! After all, this is a Democracy." (Exits, stage right, humming "America The Beautiful, badly off key.)
by seeker6079 October 27, 2005
Get the optimist mug.A more vague term than crush, meaning you feel more indifferent about that person. However you wouldn't mind dating them.
* Can be derogatory when used in the right context.
* Can be derogatory when used in the right context.
Male A : Man I love passing in highschool, cause there's just so many options that walk by!
Male B : Word up man! Every 5 one of them's a banging chick.
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Female A : Wow, look at Johnny over there, isn't he just dreamy? 8)
Female B : Oh please Bertha, your not even an option for him. >_>
Female A : OH HELLZ NO, you did not just say that!
Male B : Word up man! Every 5 one of them's a banging chick.
=========
Female A : Wow, look at Johnny over there, isn't he just dreamy? 8)
Female B : Oh please Bertha, your not even an option for him. >_>
Female A : OH HELLZ NO, you did not just say that!
by XfBiM November 6, 2009
Get the options mug.an outboard boat motor made by Mercury. When attached to your boat, it will be capable of hypersonic speeds.
Guy 1: ' you wanna take the boat out this weekend, I got the new optimax.
Guy 2: hell ya, I wanna go fast.
Guy 2: hell ya, I wanna go fast.
by steelheader March 10, 2008
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