Opening Transaction

The initial or primary transaction of an options contract. Rights for a buyer are created as is the obligation of the seller.

For example, by writing a call option, an investor is making the opening transaction—this person has created a right for the buyer to exercise the option.


Investment dictionary. . 2012.

Look at other dictionaries:

  • opening transaction — Applies to derivative products. (1) buy or sell transaction that creates a position out of a flat one (writing an option short or buying an option long). Antithesis of closing transaction. (2) First transaction of the day in a stock. Bloomberg… …   Financial and business terms

  • Opening purchase — A transaction in which the purchaser s intention is to create or increase a long position in a given series of options. The New York Times Financial Glossary …   Financial and business terms

  • Opening sale — A transaction in which the seller s intention is to create or increase a short position in a given series of options. The New York Times Financial Glossary …   Financial and business terms

  • opening purchase — Creation of or increase in a long position in a given series of options. Bloomberg Financial Dictionary A purchase transaction where rights or obligations are established. With an option purchase, the buyer becomes the holder of it. Dresdner… …   Financial and business terms

  • opening sale — Creation of or increase in a short position in a given series of options. Bloomberg Financial Dictionary A sale transaction where rights or obligations are established. With an option sale, the seller becomes the writer of the option. Dresdner… …   Financial and business terms

  • closing transaction — Applies to derivative products. buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction. Bloomberg Financial Dictionary …   Financial and business terms

  • Australian Transaction Reports and Analysis Centre — (AUSTRAC) is an Australian government agency, established in 1989 under the Financial Transaction Reports Act 1988 . [ [http://www.comlaw.gov.au/comlaw%5Cmanagement.nsf/lookupindexpagesbyid/IP200403474?OpenDocument Financial Transaction Reports… …   Wikipedia

  • openingtransaction — opening transaction n. 1. The first transaction for a security during a trading day. 2. An option order that establishes a new investment position or increases the size of an existing investment position. * * * …   Universalium

  • OPD — Tape symbol showing either the first transaction of the day in a security after a delayed opening or the opening transaction in a security whose price has experienced a large rise or fall from the previous day s closing price. Bloomberg Financial …   Financial and business terms

  • nakedoption — naked option n. An opening transaction in an option when the underlying asset is not owned by the investor writing the option. If a stock on which such an investor has written a call option is then called by the option holder, the investor must… …   Universalium

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