overwriting

overwriting definition - finance
Writing more call or put options than what are expected to be exercised. Call options are overwritten because the writer considers the underlying investment either overvalued or undervalued. Often, this strategy is used when the options writer has a concentrated stock position that he or she plans to hold indefinitely.

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

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.