Options Glossary

Glossary: Index Option

Last Updated: July 12, 2015

Glossary

Index Option

What Does Index Option Mean in Options Trading?

A derivative on an index product that gives the holder the right, but not the obligation, to buy or sell a basket of stocks depending on if the investor is holding call or put respectively. Index options are typically settled in cash basis only.

Related Options Trading Terms

homeusercrossmenuarrow-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram