A derivative contract granting its owner the right, but not the obligation to buy (for a call option) or sell (for a put option)...

The maximum number of option contracts that an investor can hold on one side of the market. Accordingly, long calls...

Generally speaking, it is the price at which a derivative contract can be exercised by the holder or the buyer....

The fixed price at which the underlying asset of an option contract may be bought or sold. For example, the...

It usually equals the position limit. However, by definition, it is the maximum number of option contracts that can be...

An option that can only be exercised on expiration date. An American option, in contrast, may be exercised at any...

A call or put option whereby the holder has the retroactive right to purchase (if a call) or sell (if...

A risk reversal that allows investors to avoid paying a premium for an option. In this option strategy, the premium...

A capped call (or specifically an automatic cash-out option) whose payoff is a specific maximum level and which will automatically...

It stands for buy-write strategy; an options trading strategy whereby an investor buys a share of stock or a basket...