A person usually an investor with a large portfolio who sells put and/or call option contracts to other investors. The primary objective of the option writer is to obtain capital gain or income or to purchase stock in the future at lower than current market prices. In recent years, large financial institutions have been showing more interest in writing options against their portfolios as a way of earning more and establishing the prices at which they will buy or sell stocks.
A seller of put and call options. A writer of a call option guarantees to sell the call option buyer the underlying instrument at a fixed price by a certain date. A writer of a put option contracts to buy the underlying instrument from the put option buyer for a fixed price by a certain date. The option writer receives a premium for granting this right.
The party that writes (sells) an option. The writer enters into an obligation to guarantee the terms of the option contract throughout its lifetime. In return, he receives an option premium from the purchaser of the option.