Investor Glossary-option holderInvestor Glossary-option holderInvestor Glossary-option holderInvestor Glossary-option holderInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Option Holder

The HTML to link to this page
 

An option holder is an individual or entity that has purchased an option. Depending upon the type of option, the option holder may be able to exercise the option contract at any time prior to expiration, if it is an American option, or on the expiration date, if a European option. An option holder can also sell the option. If the option holder has a call option, exercising the option means electing to buy the underlying asset for the strike price. If the option holder owns a put option, exercising the option means electing to sell the underlying asset for the strike price. An option holder has less risk than an option writer. The greatest loss an option holder can experience on the option is that it will expire worthless.



Rate this option holder definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: FICO score, dividends payable, VIX, average price per share, deferred tax, inflation, liquidity ratio, 144a, in escrow, per diem, command economy, annual return, open position, quality assurance, labor relations, stock market close, retained earnings, FTSE, Zero Cost Collar, diluted share, deferred revenue, debt service coverage, irrevocable trust, LIBOR, implied volatility, 401a, risk management, current ratio, 1035 exchange, option premium, EBITDA, Key Rate Duration, minority interest, wholly-owned subsidiary, required rate of return, cancelled check, real GDP, reverse mortgage, ex-dividend date, margin rate, APR, covered put, stock split, ex-dividend, class C shares, limit order, 1031 exchange, phantom income, balance sheet


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use