Optionable Stock

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.

BREAKING DOWN '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. 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 Answer >>
  2. Why do option volume quotes differ on different websites?

    Option quotes are different in price and in volume because identical options can trade on more than one market or exchange. ... Read Answer >>
  3. Does the seller (the writer) of an option determine the details of the option contract?

    The quick answer is yes and no. It all depends on where the option is traded. An option contract is an agreement between ... Read Answer >>
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    Learn how option selling strategies can be used to collect premium amounts as income, and understand how selling covered ... Read Answer >>
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    As a quick summary, options are financial derivatives that give their holders the right to buy or sell a specific asset by ... Read Answer >>
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