Delivery Option

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DEFINITION of 'Delivery Option'

A feature added to some futures contracts permitting the short position to determine the combination of timing, location, quantity, and quality of the underlying commodity stated in the delivery notice.

INVESTOPEDIA EXPLAINS 'Delivery Option'

A delivery option provides a great deal of flexibility for the deliverer of the underlying commodity, but it poses a risk for the investors expecting delivery of the underlying.

RELATED TERMS
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  2. Approved Delivery Facility

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  3. Basis Grade

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  5. Delivery Instrument

    A document given to the holder of a futures contact that may ...
  6. Delivery Notice

    A notice written by the holder of the short position in a futures ...
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