When that option is exercised by its owner, there is delivery of that physical good or commodity from one brokerage or trading account to another. A specific location on the trading floor of an exchange designated for the trading of a specific option class or stock. An investing strategy in which open positions are held for an extended period of time. For the writer of a put option, the contract represents an obligation to buy the underlying stock from the option owner if the option is assigned. Go back to top No entries.
All options involved have the same expiration date.
For example, buying 5 XYZ May 60 calls and writing 6 XYZ May 65 calls. See also ratio write. For example, buying 500 shares of XYZ stock, and writing 6 XYZ May 60 calls. A term used in technical analysis to describe a price area at which rising prices are expected to stop or meet increased selling activity. This analysis is based on historic price behavior of the stock.