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.
Browse by Subjects
expiration date
Uncovered Call
covered option
put writer
See All Related Terms »

financial management
American Municipal Bond Assurance Corporation (AMBAC)
optional payment bond