Option Class


DEFINITION of 'Option Class'

The set of all the call options or all the put options for a particular stock, index fund, or futures security on a listed exchange. The number of options available for purchase or sale within a given option class will depend on the size and trading volume of the underlying company or index, as well as overall market conditions.

BREAKING DOWN 'Option Class'

An options class can be studied as a gauge of investor sentiment for a given security, as activity in the all of the calls (options to buy) or all of the puts (options to sell) along with premium values signify investors' bets on future price activity. With the advent of LEAPs, these evaluations can go out as far as a year, or more.

  1. Option

    A financial derivative that represents a contract sold by one ...
  2. Call

    1. The period of time between the opening and closing of some ...
  3. Long-Term Equity Anticipation Securities ...

    Publicly traded options contracts with expiration dates that ...
  4. Put

    An option contract giving the owner the right, but not the obligation, ...
  5. American Option

    An option that can be exercised anytime during its life. American ...
  6. Crude Oil

    Crude oil is a naturally occurring, unrefined petroleum product ...
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  1. How do hedge funds use equity options?

    With the growth in the size and number of hedge funds over the past decade, the interest in how these funds go about generating ... Read Full Answer >>
  2. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  3. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
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    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>
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