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Restricted Option

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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.


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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.
With the restricted options open to them, they could be tempted to ride illegally and end up having them taken off them.
5 $615 $153 $ - $473 Company Restricted Options Total Revenues Stock Value Comp.
 
 
 
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