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.

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RELATED FAQS
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    Learn about stock index options, including differences between single stock options and index options, and understand different ... Read Answer >>
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    Learn about the difficulty of trading both call and put options. Explore how put options earn profits with underlying assets ... Read Answer >>
  3. Do you have to be an expert investor to trade put options?

    Learn about investing in put options and the associated risks. Explore how options can provide risk, which is precisely defined ... Read Answer >>
  4. What's the difference between a regular option and an exotic option?

    Before learning about exotic options, you should have a fairly good understanding of regular options. Both types of options ... Read Answer >>
  5. How can I find out which stocks also trade as options?

    The trading of options has become increasingly popular among retail investors as they become aware of the many different ... Read Answer >>
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