Traders write an option by creating a new option contract that sells someone the right to buy or sell a stock at a specific price (strike price) on a specific date (expiration date). In other words, the writer of the option can be forced to buy or sell a stock at the strike price.

Who writes an option contract?

An option writer, also known as a granter or seller, is someone who sells an option and collects a premium from the buyer, by opening a position. The answer to who is option writer is that it is someone who creates a new options contract and sells it to a trader seeking to buy that contract.

How are options contracts generated?

Options Contracts in Real Estate

A seller and potential buyer can therefore agree on a certain selling amount while the buyer completes any necessary steps. Once the buyer agrees to terms within that set time period, the parties can create a binding contract for the transaction.