Related Words

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

Option Premium: When you buy an option, you pay the seller a nonrefundable amount, known as the option premium, for the right to exercise that option before it expires. If you sell an option, you receive a . . . View Full Definition

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

Option Price: Also called the option premium; the price the buyer of the options contract pays for the right to buy or sell a security at a specified price in the future.

Option Spread: The trading of options of the same class at the same time in order to profit from changes in the size of the spread between different options.

Option Series: A group of options on the same underlying security with the same exercise price and maturity month.

Option Seller: Also called the option writer; the party who grants a right to trade a security at a given price in the future.

Option Run: Usually, a type of play in which the quarterback has the option of handing off, keeping, or laterally passing to one or more backs. Often described by a type of formation or play action, suc . . . View Full Definition