option agreement

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Option agreement

A form that an options investor opening an option account fills out guarantees the investor will follow trading regulations and has the financial resources to settle possible losses.

Option Agreement

An agreement that many investors must make with a brokerage in order to trade in options with that brokerage. The option agreement ensures that the investor has enough financial resources and is sufficiently familiar with the parameters of option trading in order to make sound and legal investment decisions.

option agreement

A formal written document that must be signed by an investor and put into the possession of the brokerage firm before the investor may trade options. The purpose of the agreement is to help assure that the investor has the financial resources and appropriate goals to qualify for trading options and that sufficient information in the form of an Options Clearing Corporation prospectus has been supplied so that the investor can understand the rules and risks.
References in periodicals archive ?
VENTURA - The Ventura County Board of Supervisors on Tuesday approved option agreements with two companies that hope to build a golf course and amphitheater at Camarillo Regional Park.
TSX:HBM) (HudBay) announced today that its subsidiary, Hudson Bay Exploration and Development Company Limited (HBED) has entered into Option Agreements with Halo Resources Ltd.
SNL has entered into two option agreements to acquire a 50% interest in a total of 19 mineral tenures located in the Skeena Mining Division, in the Province of British Columbia, subject to a 2% net smelter return.
Concurrently with its formation, Buffets Restaurants Holdings entered into two negotiated option agreements with two of the largest groups of holders of the Buffets Holdings senior discount notes due 2010.
First Nickel has already entered into separate option agreements with Falconbridge relating to the Bowell and Foy Mouth exploration properties, also located on the North Range of the Sudbury Basin (for details regarding those option agreements, please see First Nickel's September 6, 2005 news release).
TSX:FNI) is pleased to announce it has entered into definitive option agreements with Falconbridge Limited with respect to the Bowell and Foy Mouth exploration properties, located on the North Range of the Sudbury Basin.
This letter of intent is non binding, and the formal option agreements are subject to the approval of management of Placer Dome (CLA) Limited, the Porcupine Joint Venture, and the Board of Directors of Band-Ore.
Under the terms of the renegotiation Skygold is to issue 500,000 shares to Wildrose in lieu of those property payment and will continue to satisfy two underlying option agreements with three individuals.
The Ardeen and Festival exploration programs are being funded by Goldcorp (TSX:G; NYSE:GG) as described in previously announced option agreements.
Taking into account conveyance losses through the San Francisco Bay/Sacramento-San Joaquin Delta of about 20 percent, the option agreements would provide about 100,000 acre-feet for urban Southern California.
ASX) (OTCBB:ASXSF) (TSX VENTURE:ASX), listed on the TSX Venture Exchange and on the OTCBB (ASXSF), is pleased to announce that it has entered into 2 option agreements with a private Ontario company providing for the 100% interest in two strategically located gold exploration properties in the Red Lake Gold Belt.
Unitronix Corporation ("Unitronix")(OTCBB:UTRX) through its wholly owned Canadian subsidiary, 1522923 Ontario Incorporated, doing business under the name of Unitronix Mining & Exploration ("UTREX") of Toronto, Ontario, announces the acquisition of approximately 10,000 acres of mining property in the Sturgeon Lake area of Northwestern Ontario through the recent signing of two option agreements and their own staking programs during the past 12 months.