An option writer is an investor or trader who sells an options contract and receives an option premium from the buyer. In return, the option writer takes on the obligation to fulfil the contract if the buyer exercises their right before or on the expiry date. An option writer can sell either a call option or a put option, depending on their market view and trading strategy. Since losses can be significant in some situations, option writing is generally suited to experienced traders who use proper risk management techniques.
