Related Words

Abandonment Option: The option of terminating an investment earlier than originally planned.

Option Margin: The margin requirement for options described in Regulation T and in brokers' individual policies.

Option Mutual Fund: A mutual fund that buys and sells options for aggressive or conservative investment.

Option Offense: An offense heavily relying upon the option run and variations thereof.

Option Listing: A listing in which the broker also retains an option to purchase the property for the brokers own account. In view of the body of litigation involving breach of fiduciary duties by brokers w . . . View Full Definition

Option Not To Deliver: In the mortgage pipeline, an additional hedge placed in tandem with the forward or substitute sale.

Option Holder: A person who has an option that has not been exercised.

Option Agreement: A form that an options investor opening an option account fills out guarantees the investor will follow trading regulations and has the financial resources to settle possible losses.

Option Cycle: The cycle of option expiration months. The most common cycles are: January, April, July, and October (JAJO); February, May, August, and November (FMAN); and March, June, September, and Decem . . . View Full Definition

Option Elasticity: The percentage increase in an option's value, given a 1 percentage point change in the value of the underlying security.