physical option(redirected from Physical Options)
An option contract on an asset that is an actual thing, as opposed to a stock or futures contract. Examples of underlying assets for physical options include commodities, currencies, and U.S. Treasury securities. Other than this feature, physical options are identical to other option contracts and can be used in a variety of option strategies.
An option on a physical commodity, such as a currency, commodity, or U.S. Treasury debt, rather than on stock or futures.