restricted option

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Restricted Option

An option contract that the rules of an exchange do not permit to be used in a naked option strategy. That is, one must own the underlying asset (for a call) or sufficient cash to buy the underlying asset (for a put), or have some way to acquire it easily, in order to use a restricted option. An option may become restricted if it is worth less than $50 and is out-of-the-money. Restricted options exist in order to prevent volatility in the market. See also: Covered Option, Straddle.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

restricted option

An option in which an uncovered opening transaction cannot be made. An option becomes restricted when it closes at a price under $50 ( 1/2 point) and is out-of-the-money by more than 5 points. Restricted options are not prohibited for covered transactions or spreads.
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.
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* Employer choice of provider or control of a panel of providers, with very restricted options for workers to change provider.
In a statement, the company said: "Ongoing redevelopment and roadworks at key areas in the city centre have restricted options for a new and improved route to make it the brilliant running experience the Great Run Company and Birmingham City Council are striving to deliver.
Guidolin knows he has restricted options in attack as a result, compounded by the loss of Nathan Dyer for the next two months as the winger undergoes an operation for an ankle problem first discovered in pre-season.
The Kiwi lock was recalled in place of injured Ben Thomas for his first game in a Cov shirt since the end of September, and with restricted options off the bench ended up playing the full 80 minutes as the Blue and Whites held out defiantly to secure a 21-21 draw against the National League One leaders.
"And millions of Texas women cannot simply wait for months as this legal battle continues, with severely restricted options for safe and legal abortion services in the state."
After five months of checking the Chevy site for when my order would move to the next level and perusing the Corvette blogs for restricted options and "constrained build" issues, I receive a call that my C7 was waiting for me at the dealer.
"We already know from what some have told us that visitors will choose to use Corwen for the car park option rather than the frustrations with restricted options at Llangollen," he said.
With the rise of HDHPs, patients and doctors will need to deal with the permutations of payment, costs, and restricted options in health care services.
Mayer's pay package is made up of $1 million in annual salary, as much as $2 million in an annual bonus, and $42 million in stock options and other awards, as well as $14 million in "make whole restricted options" for forfeiture of compensation from Google.
In contrast to Israel, changing conditions leave Palestinians with very restricted options. For Palestinians, internal and external issues are strongly interrelated.
There have been many advances in equipment over the last 5 years or so from hermetically sealed options with long process times and restricted options regarding chemistry that they can use, to sealed technology options that often do not do what they were supposedly designed to do without major modifications, causing disruption to installation and production needs.
Anthony Platts, from Brewin Dolphin's Tees Valley office, said: "The only caveat is there are restricted options to which companies such a bank could invest in, the opportunity for getting the best investment could be limited.

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