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Define: Options Writing



Options Writing is when a new options contract is created for sale in the marketplace. In other words, it means "shorting" an option.

Options writing isn't called "Options Shorting" because the internal process of shorting a security and writing a security is actually very different. Writing call options allows you to profit from the premium earned when the stock remains stagnant or goes downwards while writing put options allows you to profit from the premium earned when the stock remains stagnant or goes upwards.

Read the full tutorial on Options Writing.