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Buy Write

Trading Term

An option strategy that involves simultaneously buying (or selling) a stock and selling (or buying) a call option of the same underlying. For example:

  • Purchase a Buy Write: Sell 1 XYZ April06 95 call, Buy 100 shares XYZ
  • Sell a Buy Write: Buy 1 XYZ April06 95 call, Sell 100 shares XYZ

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