Definitions for "Traded Option"
Unlike conventional options, traded options can be exercised by non-purchasers of the underlying shares, have a longer life (9 months), and can be bought and sole (hence 'traded'). Traded options are normally dealt in 'contracts' covering 1,000 shares. They are normally created in three price bands and three maturities to provide nine 'call option' and nine 'put option' choices, and a new maturity comprising three price bands comes to the market every three months to replace an existing maturity. Investors can also take traded option money by selling options short, liquidate open positions through purchases, can generate added income by taking money on both call and put options.
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An option that can be bought and sold though a securities market... more on: Traded option
A right but not the obligation to buy or sell something at a fixed price at sometime in the future.