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


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