option account

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Option account

A brokerage account that is approved to hold option positions or trades.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Option Account

A brokerage account where the brokerages permit the account holder to hold options. The extra risks of option trading entail more regulation. As a result, the holder of a brokerage account must be provided material detailing these risks and sign an option disclosure document before his/her account may become an option account.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

option account

A brokerage account that is approved for buying and selling options. Opening an option account requires that an investor complete an option agreement and receive a brochure describing the risks of trading standardized options.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
For a large fraction of beliefs (up to p [approximately equal to] 0.95), the dropout option accounts for all of the returns to college enrollment.
Hartmann acknowledges the concerns of financial advisors that options require additional time and monitoring, but asks, "How else do you expect to stay ahead of the competitors on the street?" Additionally, she points out that, "Technology has been the key that enables our team to manage 930 option accounts across multiple stocks." The Pelican Group has been managing three distinct covered call strategies through Portfolio Management, an advisory program in which the client's financial advisor invests the client's assets on a discretionary basis in a wide range of securities, the most popular among its clients (and the most common options strategy used among financial advisors) for 10 years now.
Perversely, it is precisely when the market is doing badly that employees should take advantage of low share prices, but having SAYE share option accounts with such low interest rates hardly helps to sell the concept to employees."
According to Fouladpour, the diesel engine option accounts for about 8 to 9 percent of each Volkswagen models total sales volume.