OTC Options

OTC Options

Exotic options traded on the over-the-counter market, where participants can choose the characteristics of the options traded.

Notes:

The flexibility of these options is attractive to many. With OTC options, both hedgers and speculators can benefit from avoiding the restrictions that normal standardized exchanges place on options. The flexibility allows participants to achieve their desired position more precisely and cost effectively.

See also: CBOE, Exotic Option, Expiration Date, OCC, Option, Over-The-Counter, Vanilla Option