Investors and sale of the call contract

In the article published two weeks ago, we talked about the right for those who buy, now let's look at the side of those who have the obligation.

(2nd part: the obligation)

If there is one side on "the screen" that demands to buy options, on the other side there are more daring investors who build the offer and are the sellers of the standardized contract. Options are financial derivatives that complement an investment strategy. One where the underlying asset can be stocks or ETF's listed on an organized market.

Not all stocks (or ETF's) are eligible for options; therefore, they must meet certain criteria such as liquidity and capitalization, just to name two requirements. On both sides of the board we will observe two columns. The first one will be the bid and the second one is the ask or Bid/Offer as they are usually called. In the call offers, the seller assumes the obligation to sell a quantity of contracts representing a defined number of shares (one contract = one hundred shares).