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


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
©2004-2015 Investor Glossary - All rights reserved - Terms of Use