What is Listed Option

What is Listed Option?

These are options traded on registered stock exchanges like Euronet or Chicago Board Options Exchange (CBOE) and span over securities like common stocks, market indexes, ETFs and commodities. Exercise prices along with the expiration dates are available for all listed stock options. At times, these are also called “exchange-traded options”.

Quite a few numbers of options are sold in OTC market when there is lack of liquidity in the market. However, the terms of these trading are variable and such trading usually stays limited to the side of seller and buyer.

Mainly two variants of listed options exist: European style option and American style option. Whereas the American style options stands exercisable at any point in time till the moment it reaches expiration date, the European option can be exercised only during specified time duration. Options trading on the national exchanges are generally of American style.

Share This


Tags: , ,

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Related posts:

  1. American Options
  2. Mid-Atlantic Option
  3. What is Bermuda Option?
  4. All About The Covered and Uncovered Call Options
  5. Future Option Trading: How It Works

October 6, 2008 · Filed Under Options Trading

Comments

Leave a Reply




Close
E-mail It