Non-Equity Option

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Non-Equity Option

An option whose underlying entity is not common stock; typically refers to options on physical commodities and index options.

Non-Equity Option

An option contract on anything other than stock. Common examples of NEOs include commodities, currencies, indices, bonds, and even other options.
References in periodicals archive ?
Regulated futures contracts, foreign currency contracts, nonequity options (IRC section 1256 contracts)
1256 contracts, which include regulated futures contracts, foreign currency contracts, nonequity options, dealer equity options, and dealer securities futures contracts.
1256, even if such options are listed and otherwise would be nonequity options under Sec.
For federal income tax purposes, options are categorized as listed or unlisted options, and as equity or nonequity options.
IRC section 1256(b) encompasses any of the following types of contracts: 1) regulated futures contracts, 2) foreign currency contracts, 3) nonequity options, 4) dealer equity options, or 5) dealer securities futures contracts.
Other types of instruments that are taxed in the same manner are foreign currency contracts and nonequity options.
The taxpayers further argued that Congress had added other option contracts, such as nonequity options and dealer equity options, to section 1256, thus indicating its intent to include foreign currency options.
1256, certain contracts (such as regulated futures contracts, foreign currency contracts, nonequity options and dealer equity options) are marked to market, and any capital gain or loss is treated as 60% long-term and 40% short-term.
They include regulated future contracts, foreign currency contracts, and nonequity options.
1256 contains the mark-to-market rules relating to certain regulated futures contracts, foreign currency contracts, nonequity options and dealer equity options.
2) See Q 1048 through Q 1071 for the tax treatment of various transactions involving the purchase, holding and disposition of puts, calls, nonequity options, and combinations thereof.
If a tax straddle is made up solely of regulated futures contracts, foreign currency contracts, and nonequity option contracts (i.