graduated call writing

graduated call writing definition - finance
An options strategy that involves writing, or selling, call options at progressively higher exercise prices.  As the price of the underlying stock rises and the options are exercised, the writer earns a higher average premium, or income, from writing the option. This occurs because premiums typically rise as the underlying stock rises.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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