WebSep 26, 2024 · Key Takeaways. Options are derivative contracts that give you the right to buy or sell the underlying security at a set price called the strike price. In-the-money options are those which would generate a positive return if exercised. Out-of-the-money options are those that would generate a loss if exercised, and typically aren’t exercised. Weboption noun [ C ] us / ˈɑp·ʃən / one thing that can be chosen from a set of possibilities, or the freedom to make a choice: The program helps students explore career options. An option …
Option Definition & Meaning - Merriam-Webster
WebThe seller of a call option is bearish and believes the price will stay the same or fall. The buyer of a put option expects the underlying stock to fall below the strike price before … WebSep 12, 2024 · What does active option mean? An active option contract is when the seller has accepted an offer on their home and the property is now in the option period. During this time, the buyer has the unrestricted right to terminate the contract for any reason without risking their earnest money deposit. shy joined the army again
OPTION definition in the Cambridge English Dictionary
WebOct 6, 2024 · A call option is "in the money" if the market price of the underlying stock rises above the strike price, as exercising the option would allow someone to purchase the stock at a below-market... WebMar 27, 2024 · the power or right of choosing. 2. something that may be or is chosen; choice. 3. the act of choosing. 4. an item of equipment or a feature that may be chosen as … WebAug 17, 2024 · This means you can require whoever sold you the put option (known as the writer) to pay you the strike price for the stock at any point before the time expires. However, you are under no obligation to do so. Buying put options is a way to hedge against a potential drop in share price. They could also reap profits from bear markets or declines ... the pawffice