restricted option

Restricted Option

An option contract that the rules of an exchange do not permit to be used in a naked option strategy. That is, one must own the underlying asset (for a call) or sufficient cash to buy the underlying asset (for a put), or have some way to acquire it easily, in order to use a restricted option. An option may become restricted if it is worth less than $50 and is out-of-the-money. Restricted options exist in order to prevent volatility in the market. See also: Covered Option, Straddle.

restricted option

An option in which an uncovered opening transaction cannot be made. An option becomes restricted when it closes at a price under $50 ( 1/2 point) and is out-of-the-money by more than 5 points. Restricted options are not prohibited for covered transactions or spreads.
Mentioned in ?
References in periodicals archive ?
A Restricted Option and related Restricted Right must be exercised simultaneously with the Restricted Option settled in equity while the Restricted Right can be settled in common shares or cash, at the option of the holder.
Of the 80 sample firms that established restricted option plans, only five allowed options to be issued at less than 95% (Gulf Oil, National Steel, Pittsburgh Plate Glass, Allis Chalmers, and Inland Steel), and even these five firms apparently never actually issued options at less than 95%.
The flexible plan allows passengers to cancel or modify their reservation without charge, while the restricted option offers the benefit of a typically less expensive fare for those travelers who are comfortable with cancellation and change restrictions.
And millions of Texas women cannot simply wait for months as this legal battle continues, with severely restricted options for safe and legal abortion services in the state.
We already know from what some have told us that visitors will choose to use Corwen for the car park option rather than the frustrations with restricted options at Llangollen," he said.
Previously, pupils who had restricted options to pursue other subjects resented the enforced learning of Welsh.
With the rise of HDHPs, patients and doctors will need to deal with the permutations of payment, costs, and restricted options in health care services.
In contrast to Israel, changing conditions leave Palestinians with very restricted options.
Anthony Platts, from Brewin Dolphin's Tees Valley office, said: "The only caveat is there are restricted options to which companies such a bank could invest in, the opportunity for getting the best investment could be limited.
Captain Rahul Dravid is juggling his restricted options as India try to get back in the three-match series which is scheduled to conclude on Sunday.
5 $615 $153 $ - $473 Company Restricted Options Total Revenues Stock Value Comp.
Hart admits he found Woodward's decision to name his Test line-up for Australia and New Zealand A before leaving England last month "strange" claiming such an unexpected move might have restricted options.

Full browser ?