Optionable Stock

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DEFINITION of 'Optionable Stock'

A stock that has options trading on a market exchange. Not all companies that trade publicly have exchange traded options, this is due to requirements that need to be met, such as minimum share price and minimum outstanding shares.

INVESTOPEDIA EXPLAINS 'Optionable Stock'

This allows investors to purchase options on the underlying stock, giving them the right to buy or sell shares of the optionable stock at a set price. The easiest way to check whether a stock is optionable is to go to the Chicago Board Options Exchange website and check whether there are options listed for a particular stock.

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RELATED FAQS
  1. 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 Full Answer >>
  2. What requirements must a company meet for options to be traded on its stock?

    Companies must meet four criteria before options on their stock can be traded on options exchanges: The underlying equity ... Read Full Answer >>
  3. If a long call is owned on the record date of a stock, is the owner of the option ...

    The owner of a long call for a stock is entitled to a dividend only if the option is exercised prior to the ex-dividend date, ... Read Full Answer >>
  4. How can an investor profit from the cyclical nature of the electronics sector?

    An investor can profit from the cyclical nature of the electronics sector in two ways. He can employ sector rotation, shifting ... Read Full Answer >>
  5. What does negative vega mean for credit spreads?

    Greek vega measures an option's sensitivity with respect to a change in the underlying asset's volatility. The vega of an ... Read Full Answer >>
  6. What options strategies are best suited for investing in the banking sector?

    The covered call option strategy allows investors to profit from the banking sector's stability and its track record for ... Read Full Answer >>
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