Options are flexible financial tools that assist investors in managing investment portfolios. Options can protect stock holdings from a decline in market price, increase income from current stock holdings and position an investor to buy stock at a lower price or sell stock at a higher price. Investors can also utilize options to position themselves for large market moves and benefit from a stock price's rise or fall without incurring the cost of buying or selling the stock outright.
A stock option is a contract which conveys to its holder the right, but not the obligation, to buy or sell shares of the underlying security at a specified price on or before a given date. This right is granted by the seller of the option.
There are two types of options, calls and puts. A call option gives its holder the right to buy an underlying security, whereas a put option conveys the right to sell an underlying security.
For more information about equity options, obtain a copy of Understanding Equity Options. This publication is also available in hardcopy from your broker, the NASDAQ OMX PHLX (PHLX) and any of the exchanges on which options are traded. The Options Industry Council (OIC) is also an excellent resource for additional options information.
FLEX® Options offer the newest in risk management instruments, especially designed to extend investor access to customized derivative products. With FLEX® Options, you have the ability to create customized equity options- options on stocks that you design to fit your own investment strategies and goals. FLEX® Options allow you to specify characteristics such as the expiration date, strike price, and exercise-style of the contract.
Accessing FLEX® Trade Information
The following quote vendors currently display online updates of FLEX® option information. Each terminal enabled for options data will display FLEX® information. The format currently provided by vendors includes RFQs, quotes and trades in a news headline format.
Bloomberg Financial Markets:
Type FLEX[Go] for page display of all FLEX messages for all exchanges.
Type FLXD[Go] to filter messages displayed by FLEX[Go] function. User may select type and / or exchange.
For customer support, call Bloomberg Analytics, +1 800 357 7555.
Type XYZ/FLXA [Enter] for most recent E-FLEX activity for all exchanges.
Type XYZ/FLXB through Z [Enter] for today's history of E-FLEX activity for all exchanges.
For customer support, call +1 800 435 0101.
Type .FLEX [News Recall] for page display of all FLEX messages for all exchanges.
For customer support, call +1 888 832 2878.