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Option seller |
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Option sellerAlso called the option writer; the party who grants a right to trade a security at a given price in the future.Option seller Similar MatchesShare optionShare optionAn incentive given to company directors and employees to promote loyalty and commitment.The employee is offered an option to buy shares in the company at a fixed price, at or below the then market price. The option specifies the time during which the employee can exercise the right, and often this will be a period of years. If the company's share price rises in that period, the employee can exercise the option, acquire the shares at the option price, and immediately sell them for a capital gain. If the company's shares do not rise, the employee may take the view that the option is not worth exercising. The option mechanism thus gives the employee discretion.Tax liabilities may be reduced on gains where schemes are approved by the Inland Revenue. Uncovered optionsUncovered optionsSee: Naked options Option not to deliverOption not to deliverIn the mortgage pipeline, an additional hedge placed in tandem with the forward or substitute sale. Equity optionsEquity optionsOptions on the shares of companies. Equity options are traded in the UK at the London International Financial Futures and Options Exchange (LIFFE) and the London Securities and Derivatives Exchange (OMLX). Real optionReal optionAn option or option-like feature embedded in a real investment opportunity. Further SuggestionsOption premiumOption Pricing Curve Options contract multiple Reload Stock Option Liquid yield option note (LYON) Multi option financing facility European Options Exchange (EOE) Path dependent option Class of Options FLEX Options Non Equity Option Garman Kohlhagen option pricing model Two state option pricing model option series One-way option Call option Equity options Long position in an option Listed option Stock option Option price Greenshoe option Tax timing option Covered or hedge option strategies Call option |
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