• To sell an option.
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| ||Amortization: The systematic expensing of a portion of the cost of a fixed asset against sales revenue.(1) The paying off of debt in regular installments over a period of time. (2) The deduction of certain capital expenses over a specific period of time.The repayment of a loan by installments.Is the periodic pay down of principal. This is a common feature of most mortgages. Amortize also refers to the accounting Write down or reduction in an intangible asset. This creates a charge against income. Amortization can also refer to the reduction in the cost basis of a bond purchased at a premium to par. Sometimes, amortization is used as a synonym for depreciation or other write down of an asset or liability. In the later capacity it tends to apply to intangible assets. See Interest Impact on Installment to Amortize or Amortization.The process of reducing a debt through installment payments of principal and interest.|
| ||Bank guarantee letter: Is a document by which an approved bank certifies that an put option Writer or grantor has sufficient funds at the bank to cover the write. The funds are equal to the exercised value of the put. This value is equal to the strike price multiplied by the number of shares. It effectively reflects an outright purchase of the underlying security at the strike level.|
| ||Covered write: Is the sale of an option against a position in the underlying instrument. Often this is the sale of a call against a long position in the stock. It could also be the sale of a put against a short position in the stock. Here, if the put is exercised, a long stock position is assigned to the seller of the option. Then this newly acquired long position is offset by the previously held short position. The covered Write can also apply to warrant and other option positions.|
| ||Financial analyst: Also called securities analysts and investment analysts, professionals who analyze financial statements, interview corporate executives, and attend trade shows, in order to Write reports recommending either purchasing, selling, or holding various stocks.See Analyst.|
| ||Synthetic short put: Is a long position in the underlying combined with a short call. Is sometimes referred to as a covered call Write position.|
| ||Related Terms|
| ||Covered call write|
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