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.
ALSO SEE: CBOE S&P 500 BuyWrite Index
- Course: Covered Calls. Options Industry Council.
- Buy-Write Option Strategy Generating Nice Profits. SeekingAlpha.
- Buy-Write. Investopedia.