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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Method of reducing risk by closing out existing positions as they approach maturity and replacing them with positions that have later maturity dates. This strategy is typically used with options that ...

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

An investment technique in which an investor sells shares short before actually borrowing the shares or before determining if shares can be borrowed. The practice is often illegal, but the SEC has ...

Domain: Banking; Category: Investment banking

A put or call that is written by an investor who does not own a position in the underlying asset that locks in the cost of delivering the shares if the option holder elects to exercise the option. ...

Domain: Banking; Category: Investment banking

Long-term option securities, often issued by the owner of an extractable resource such as precious metals, which gives the holder the right but not the obligation to acquire ownership of the ...

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

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