OTC Options

OTC Options

Option contracts that are not traded on an exchange. Because they are over-the-counter, OTC options are not standardized contracts and, as a result, can have any number of unusual features. This allows investors more flexibility, but creates additional risk. See also: Exotic option.
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The availability of affordable, effective OTC options compared to costly prescription drugs that are prescribed for the same condition can mean the difference between treating and not treating a health issue.
FLEX Options provide institutional asset managers with an alternative to OTC options with the benefits of an exchange setting, including competition in price discovery, liquidity, transparency, secondary market fungibility and the elimination of trading counter-party credit risk by having The Options Clearing Corp.
Mohammad Ahmad, GMI's chief operations and risk officer, remarked that his firm's initial product offerings--an inflation protection fund launched in December 2007 and a discretionary global macro fund to be launched in the next month-- are both very topical, with portfolios consisting of inflation-linked structures, OTC options, and exchange-traded futures.
The SGX OTC Options complement the thriving SGX Iron Ore and FFA product suite and provide customers with a comprehensive suite of instruments for hedging, trading, and credit risk mitigation.
The Global Exceed strategy can be accessed by institutional investors, pensions funds, asset managers, private banks, insurance companies and other fund managers via a wide range of formats, including excess return swaps, cash-plus floaters, funds, OTC options, principal-protected notes (including CPPI), and liability-side swaps allowing for structured funding cost reduction.
In his new role, Roelke will be responsible for selling of equity derivative securities, such as ETFs and OTC options and swaps.
Insurance companies may opt to stop paying for prescription eye drops such as Patanol, Optivar, and Elestat since they are very similar to the new OTC options.
Zetters sells OTC options, financial instruments which hedge against market fluctuations, to smaller City institutions, wealthy individuals, traders and hedge funds.
For each source of risk, firms are asked if they managed their exposure, and if so, to rank the usage of seven types of derivative instruments: forwards, futures, swaps, OTC options, exchange-traded options, structured derivatives (combinations of forwards, swaps, and options), and hybrid debt (straight debt with embedded derivative instruments) in terms of importance to their firm for managing that exposure.
Bronson Plocus joins Weeden as a volatility trader with more than 10 years experience trading listed and OTC options, variance swaps, ETF, and single stock products.
Consumers have complained about the lack of OTC options tough enough to target throbbing migraine pain, added Bayer marketing director Reese Fitzpatrick.
Saxo Bank began publishing OTC options data in May last year and has since had as a core ambition to promote openness and transparency in the forex market.