The underlying instrument or index for an option position. The underlying can be a stock, ETF, index or future. Basically the financial instrument that represents the underlying price used to value an option contract. For example: for the option “SPY Feb 26 2016 12.00 Put” the underlying is SPY (the S&P 500 ETF).

« Back to Glossary Index

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>