Agreement Replace Option Choice For Free

Stock replacement is a trading strategy that substitutes deep in the money call options for outright shares of stock. The initial cost is lower but the holder is able to participate in the gains of the underlying stock almost dollar for dollar since the calls are nearly +1.00 delta.

The option may be exercised only if funds become available within the 60-day period. In the event that sufficient funding is not available within the 60 day period, the Government waives the right to exercise the option, thereby rendering any additional requirements subject to full and open competition requirements.

Multi-leg options are 2 or more option transactions, or "legs", bought and/or sold simultaneously in order to help achieve a certain investment goal.

In options trading, "to exercise" means to put into effect the right to buy or sell the underlying security that is specified in the options contract.If the holder of a call option exercises the contract, they will buy the underlying security at a stated price within a specific timeframe.

Option Award Agreement means a written or electronic document setting forth the terms and provisions applicable to a Non-Qualified Stock Option granted under the Plan. Each Option Award Agreement is subject to the terms and conditions of the Plan.

Companies award stock options to recruit and retain key employees, executives and directors. These options give holders the right to buy the underlying shares at predetermined prices, known as strike prices, before specified expiration dates.

There are two main types of stocks: common stock and preferred stock.