Seller's Option

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Dictionary Says

Definition of 'Seller's Option'

The right of a forward contract seller to choose some of the specifications of a commodity to be delivered. The choices about the delivered commodity's quality and delivery specifications must fit among the limits imposed by the terms of the contract.  

Seller's option can also refer to a put option.
Investopedia Says

Investopedia explains 'Seller's Option'

For some commodities, such as rice and oil, collecting suitable amounts of a commodity and providing the transportation can be a very complicated process. For example, a contract for corn can represent 5,000 bushels. Since hedgers tend to buy large numbers of contracts at a given time, a forward contract seller might have to deliver hundreds of thousands of corn bushels during one delivery. Giving contract sellers a little bit of leeway can alleviate some of the difficulties involved with delivery logistics.
Search results for

'Seller's Option'

  • Getting Acquainted With Options Trading

    http://www.investopedia.com/articles/optioninvestor/03/073003.asp
    ... The option buyer's gain is the option seller's loss and vice versa: any payoff diagram
    for an option purchase must be the mirror image of the seller's payoff ...

  • Series 7 Study Guide - Securities Transactions - Settling ...

    http://www.investopedia.com/exam-guide/series-7/securities-transactions/settling-secondary-market.asp
    ... In a cash trade, delivery occurs on the day of the trade. At the seller's option,
    the parties can take anywhere from three to 60 business days to deliver. ...

  • Series 7 Study Guide - Derivatives - Straddle Option Strategies ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/straddle-option-strategy.asp
    ... Derivatives - Straddle Option Strategies. ... The seller's bet is that the stock
    price will not be volatile: Figure 8.8: Short Straddle. ...

  • Option Volatility: Strategies and Volatility | Investopedia

    http://www.investopedia.com/university/optionvolatility/volatility5.asp
    ... Think of the seller of the option - he or she would want to charge more if the seller's
    risk increased with the rise in volatility (likelihood of larger price ...

  • The Basics Of Covered Calls

    http://www.investopedia.com/articles/optioninvestor/08/covered-call.asp
    ... If the seller of the call option owns the underlying shares the option is considered
    "covered" because of the ability to deliver the shares without purchasing ...

  • Rent-To-Own Real Estate Full Of Pitfalls

    http://www.investopedia.com/articles/mortgages-real-estate/08/rent-to-own.asp
    ... (Note: In a rapidly appreciating real estate market, the seller of a lease-option
    property would probably want to add a clause to the contract allowing for the ...

  • Introduction To Put Writing

    http://www.investopedia.com/articles/optioninvestor/02/030102.asp
    ... If, however, the price of ABC has fallen dramatically, the put-seller will either
    be forced to buy the put option at a much higher price or forced to purchase ...

  • The Ins And Outs Of Seller-Financed Real Estate Deals

    http://www.investopedia.com/articles/mortgages-real-estate/10/should-you-use-seller-financing.asp
    There's more than one way to buy or sell a house. Seller
    financing presents yet another unique option. ...

  • Series 7 Study Guide - Customer Accounts - Short Sales ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/short-sales.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    The short seller's shares are held "in the box" by her broker, so she does not ...

  • Alternate Methods Of Online Payment - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/Alternate-Methods-Of-Online-Payment.aspx
    ... bill payment is another method of sending money to a seller's or creditor's ... Mobile
    Payments The mobile payment option is relatively new, and gaining popularity ...

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