Home > Blossary: Options Terms and Definitions
Option is the right, but not the obligation, to buy or sell a specific amount of a given stock, commodity, currency, index, or debt, at a specified price during a specified period of time. This glossary will give you insights into the world of Option.

Category: Business

20 Terms

Created by: zzcgood

Number of Blossarys: 7

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An investing derivative whereby the holder has a claim to one unit of the underlying asset if the market price of the asset is above the strike price of the option. If the market price is lower than ...

Domain: Banking; Category: Investment banking

Definitions (2) 1. Options trading: A notice from an options clearing house received by an option's writer stating that the current option has been exercised and the writer must produce shares of ...

Domain: Banking; Category: Investment banking

The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike ...

Domain: Banking; Category: Investment banking

Definitions (2) 1. The acceptance of a security for trading on a registered exchange. 2. A written agreement between a real estate owner and an agent authorizing the agent to search for a buyer for ...

Domain: Banking; Category: Investment banking

The act of closing out one derivative position that is part of a more complex investment strategy. Examples of multi-legged options include straddles, strangles, straps, and spreads. Legging out ...

Domain: Banking; Category: Investment banking

Option contracts that have little or no outside interest and are thus unable to be sold for cash at the prevailing market price. This usually occurs when an option is far away from its expiration ...

Domain: Banking; Category: Investment banking

An option in which the underlier is the common stock of a corporation, giving the holder the right to buy or sell its stock, at a specified price, by a specific date. also called stock option.

Domain: Banking; Category: Investment banking

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