0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Featured video
External links
Comments

Definition

Hide links

An index option is an option contract based on an index of assets as the Underlying instrument. Typically these will be stock indices such as the S&P 500, Russell 2000, FTSE, DAX etc but they might also be others such as the VIX (Volatility Index) which measures the ratio of put to call Options.

Index Options are usually cash-settled, this means that if the option expires In The Money then the Option Writer will be obliged to pay the option owner money rather than deliver stocks, commodities etc. Most index Options are European Style so they cannot be exercised before expiry.
Rating: 0/5 (0 votes cast)
Contributed by: Ralph Windsor

Broader

Underlying

Narrower

N/A

Suggest a Related Term


Share this Page

Related Directory Entries


Featured Video View All

Index Options

Kerry Given of Parkwood Capital explains index options.


More video (4)...


External Links

Suggest a Link

Equity vs. Index Options
http://www.optionseducation.org/strategies_advanced_concepts/advanced_concepts/index_options/equity_vs_index_options.html

OIC article on the difference between stock and index options.

Rating: 0/5 (0 votes cast)

View OIC Options Glossary in Options Market Glossary Directory

SPX & Stock Index Options
http://www.cboe.com/micro/spx-stock-index-options.aspx

CBOE article describing index options with reference to SPX (the S&P 500 index).

Rating: 0/5 (0 votes cast)

View CBOE Options Dictionary in Options Market Glossary Directory

Index Option
http://www.investopedia.com/terms/i/indexoption.asp

Investopedia article defining index options.

Rating: 0/5 (0 votes cast)

Comments

There are currently no comments for this term.


Post a Comment

You must be registered and logged in to post a comment.

Video

Index Options

Kerry Given of Parkwood Capital explains index options.


Introduction to Index Options

Canadian video explaining index options.


Stocks, Indexes & ETFs - What's The Difference?

OptionAlpha video describing the difference between stock, index and ETF options.


Index Option

Index option trade demonstration using ThinkOrSwim platform.