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. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, ...
  3. Option

    A financial derivative that represents a contract sold by one ...
  4. Put

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  5. Derivative

    A security whose price is dependent upon or derived from one ...
  6. Spread

    1. The difference between the bid and the ask price of a security ...
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