Ratio Call Write

Ratio Call Write is an option strategy in which an investor owns shares in the underlying stock and writes more at-the-money call options than the amount of underlying shares owned.

Ratio Call Write

Ratio Call Write is an option strategy in which an investor owns shares in the underlying stock and writes more at-the-money call options than the amount of underlying shares owned.

 


Application of Ratio Call Write

The goal of a ratio call write is to capture the premiums received by the option sale. The call writer hopes that there is little volatility in the underlying stock over the same period.


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