overwriting

overwriting definition - business

overwriting

In options trading, the writing of more options than one expects to have exercised. Investors overwrite call options because they consider the underlying stock overvalued. Investors overwrite put options because they consider the underlying stock undervalued.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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