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.
Irons in a golf bag. An iron is a type of club used in the sport of golf to propel the ball towards the hole. Irons typically have shorter shafts and smaller clubheads than woods, the head is made of solid iron or steel, and the head's primary feature is a large, flat, angled face, usually scored with grooves.