option holder

Option holder

A person who has an option that has not been exercised.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Option Holder

One who owns an option contract. In a call, the option holder has the right, but not the obligation, to buy the underlying asset, while, in a put, the option holder has the right to sell the underlying asset. An option holder may sell the option contract itself, at which point the buyer becomes the option holder.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

option holder

The owner of an option to purchase (call) or sell (put) an asset such as shares of common stock or a further contract. The option holder pays the premium and has the alternative of using the option or allowing it to expire. An option holder's loss is limited to the amount of the premium required to purchase it.
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 ?
In planning with stock options, there are three principal choices available to the option holder:
123(R) requires is not intended to predict the ultimate value realized by an option holder, the staff will not object to reasonable fair value estimates made in good faith in accordance with the statement, even if subsequent events indicate other estimates would have been more accurate.
(13) The proposed regulations provide for no gain or loss recognition to either the option holder or the partnership on the options' exercise.
The plan has recently been amended to take advantage of the new securities law rules and provides that the option holder may transfer the option to certain of the holder's descendants or to a trust for their benefit.
Also, when exercising the option, the option holder will receive a cash payment from Mellby Gard corresponding to the market value of the ordinary share reduced by the exercise price, however, no more than SEK28.80 per option.
The sale (usually to an entity benefiting the option holder or his or her relatives) was assumed to close the compensation transaction and fix compensation attributable to the option, due to an arm's-length disposition.
The model assumes that the price of the underlying stock evolves according to a binomial process and that exercise decisions are made so as to maximize the expected utility of the option holder's terminal wealth.
For example, if the exercise price of an NSQ is $10 and the fair market value at that time is $50, the option holder picks up $40 per share in ordinary taxable income.
The most commonly used technique is the exercise of an option with existing stock owned by the option holder. However, where shares are not currently held, a series of variations have recently been introduced whereby the exercise price is essentially paid with a portion of the shares acquired upon exercise.
person that holds an option to acquire foreign company stock is treated as owning the stock subject to the option for purposes of determining' whether the option holder is a U.S.
An option contract provides one party (the option holder) with a right, but not an obligation, to buy or sell an underlying financial instrument, foreign currency or commodity at an agreed-on price on or before a set date.