Outright Option

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DEFINITION of 'Outright Option'

An option that is bought or sold by itself; in other words, the option position is not hedged by another offsetting position. An outright option can be either a call or a put.

INVESTOPEDIA EXPLAINS 'Outright Option'

Most option trades involve outright options. The opposite strategy to purchasing outright options is a spread trade strategy, which involves purchasing one option and selling another option of the same class but of a different series.

RELATED TERMS
  1. Call

    1. The period of time between the opening and closing of some ...
  2. Spread

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  3. Short (or Short Position)

    1. The sale of a borrowed security, commodity or currency with ...
  4. Option

    A financial derivative that represents a contract sold by one ...
  5. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, ...
  6. Derivative

    A security whose price is dependent upon or derived from one ...
RELATED FAQS
  1. What does "outrights" mean in the context of the FX market?

    The term "outrights" is used in the forex (FX) market to describe a type of transaction in which two parties agree to buy ... Read Full Answer >>
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