Writing or Selling a Call Option is when you give the buyer of the call option the right to buy a stock from you at a certain price by a certain date. In other words, the seller (also known as the writer) of the call option can be forced to sell a stock at the strike price. The seller of the call receives the premium that the buyer of the call option pays. If the seller of the call owns the underlying stock, then it is called writing a covered call.. If the seller of the call does NOT own the underlying stock, then it is called writing a naked call.. Obviously, in this instance it is naked because the seller does not own the underlying stock. The best way to understand the writing of a call is to read the following example.
A golf club. There are several different clubs or stick to hit the ball: Driver, Fairway Woods, Irons, Hybrids, Putter, and a Wedge. The generic term is golf club or sometimes stick. The individual clubs are grouped into irons (numbered 1 through to 9), wedges (sand, pitching, probably others I can't think of) woods (1 to 5 or 6), (1 woods are often called drivers) and putters.
Golf cart. A golf cart (called golf car in ANSI standard Z130.1, since carts are not self-propelled)[1] is a small vehicle designed originally to carry two golfers and their golf clubs around a golf course or on desert trails with less effort than walking.