Action taken by an Option Holder for the purpose of taking advantage of a contractual Right to buy or sell the Underlying security, commodity, or financial instrument. Specifically, an investor holding a call option will buy the underlying asset, and an investor holding a put option will sell it. Options not exercised by the expiration day expire worthless and result in a loss for the option holder.
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covered option
double witching week
naked option
quadruple witching week
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