FLEX option


Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.

FLEX Option

An option that does not have standardized features. The writer and the buyer of a FLEX option negotiate the specific terms, such as the strike price and the expiration date. It is important to note the FLEX options do not trade in the continuous market. Generally speaking, clearing houses are the main writers of FLEX options.

FLEX option

Registered name for a customized equity option with unique characteristics including expiration date, strike price, and exercise style. Unlike regular options, FLEX options do not have standardized features and do not trade in continuous markets.
References in periodicals archive ?
In fact, since First Tennessee began offering flex options in 1992, the average absenteeism has dropped from about six days to one and a half; employee retention rates increased from 78 to 84 percent.
Other products engineered by CBOE include equity options, security index options, Weeklys options, FLEX options and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM).
Trading Edge will work with the CBOE to build a highly customized web-based system for trading CBOE's FLEX options, which allow institutional markets/participants, such as pension funds, money managers and insurance companies, to meet their investment objectives by customizing certain terms of an option contract.
Flex options in the PG-64 set include R300 (regular) S300 (stiff) and X100 (extra stiff).