My uncle trades options, and he was telling me something about how when you sell an option, you have no obligation, but only the "original" writer has an obligation, the person who actually first released the options into the market. My uncle also writes options too, in which he says he does have an obligation and he said it brokerages, for example Etrade charge around a $2 fee for "writing" options. And thats the pro of writing them over simply buying and selling them. Because when you buy and sell them, you have to pay for the options, contract fees, etc.
So is this true? If I buy options in the market, and then later sell them for a profit, do I have an obligation as if I would have one if I was the original writer?
2006-12-10
03:15:51
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3 answers
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asked by
RockiesFan
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in
Investing