Buy-write

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A buy-write is a covered call in which the underlying shares of stock are purchased simultaneously with writing the call contract(s).[1] [2]

It is an options trading strategy designed to generate income from option premiums. Because the options position is covered by the underlying position, the downside risk of writing the option is minimized.[3]

ALSO SEE: CBOE S&P 500 BuyWrite Index

References

  1. Course: Covered Calls. Options Industry Council.
  2. Buy-Write Option Strategy Generating Nice Profits. SeekingAlpha.
  3. Buy-Write. Investopedia.