option exchange

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Option Exchange

A securities exchange that primarily or exclusively trades option contracts. Often, options are traded on an exchange along with futures and other derivatives. However, some exchanges, like the CBOE, specialize in option transactions.

option exchange

An organized securities exchange, the primary purpose of which is to provide a location and framework for trading standardized option contracts. An option exchange handles its trading much as a stock exchange handles its trading in stocks and bonds. Until 1973, with the opening of the Chicago Board Options Exchange, all options were traded through a limited number of firms specializing in them. Most of the options traded at that time were so unique that it was difficult or impossible to close a position in one before its expiration.
References in periodicals archive ?
For the first time in a long time, Netflix is not one of the market's top performers in 2019, but at least one large trader is making some big option market bets on a Netflix rebound.
Players in the option market are showing the most interest in Jan 25th calls: 48 strikes trade 8.1K and 47 and 49 strikes are next most active.
The new enhancements to the Instinct Options component of the platform include an infrastructure upgrade, a range of new algorithms, and direct option market data feeds.
Thus, Blomeyer and Klemkosky concluded that the option market appears to be efficient using the Black-Scholes hedging strategy.
Poteshman, A., 2006, "Unusual Option Market Activity and the Terrorist Attacks of September 11, 2001," Journal of Business 79, 1703-1726.
Jennica will play a critical role coordinating relationships on behalf of each of our ETF, institutional options and special situations trading desks, while Randy will add yet a further degree of depth for clients that depend on us for option market and arbitrage strategy implementation.”
This developing market was launched mid-2010, and currently some studies are being carried out for establishing stock option market at TSE.
Implied volatility, a gauge of option market expectations of future moves, on Nikkei futures edged up only slightly.
A futures or an option market? A correct answer to such a question can be made only appealing to the specialist's definitions.
Before moving back to Erie to join the family business, Jeremy worked in the Chicago area for several years with the Chicago Futures Group, Futrex Trading LLC and as an equity index option market maker on the Chicago Mercantile Exchange.
(1) There may not be greater demand just at the open of trading in the option market relative to the middle of the day; and (2) High transactions demand at the close of trading in the option market need not coincide with narrower bid/ask spreads.
The driving force behind these products' popularity has been the twin combination of low interest rates and high implied volatilities in the fixed-income option market. More recently, a contributing factor has been the relatively wide swap premiums for long-dated corporate debt that many treasurers are unwilling to pay on a simple outright basis.