Traditional Options definition

Traditional Options. A particular type of option (called a "traditional option") is written by certain London Stock Exchange firms under special exchange rules. These may involve greater risk than other options. Two way prices are not usually quoted and there is no exchange market on which to close out an open position. It may be difficult to assess the value of a traditional option or for the seller of such an option to manage his exposure to risk. Again, the Investment Adviser should only provide for the Investment Guidelines to permit the Local Manager to invest in "traditional options" if the Investment Adviser is fully aware of the risks involved.
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Traditional Options certain London Stock Exchange member firms under special exchange rules write a particular type of option called a "traditional option". These may involve greater risk than other options. Two-way prices are not usually quoted and there is no exchange market on which to close out an open position or to affect an equal and opposite transaction to reverse an open position. It may be difficult to assess its value or for the seller of such an option to manage his exposure to risk. Certain options markets operate on a margined basis, under which buyers do not pay the full premium on their option at the time they purchase it. In this situation you may subsequently be called upon to pay margin on the option up to the level of your premium. If you fail to do so as required, your position may be closed or liquidated in the same way as a futures position.
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Examples of Traditional Options in a sentence

  • Traditional Options: certain London Stock Exchange member firms under special exchange rules write a particular type of option called a “traditional option”.

  • In addition to the Traditional Options, on June 30, 2003 the Corporation granted to MADDON under the Corporation’s 1996 Stock Incentive Plan, as amended, irrevocable NQOs to purchase up to 112,500 shares of the Corporation’s Common Stock at a price of $15.06 per share, representing the fair market value per share of the Common Stock as of the close of business on June 30, 2003 (the “Milestone Based Options”).

  • The general terms and conditions governing Traditional Options and the Milestone Based Options are set forth in written stock option agreements that were previously executed and delivered to MADDON and any general terms and conditions governing Future Options will be set forth in written stock option agreements executed and delivered to MADDON at the time of such grant (collectively, the “Options”).

  • In addition, subject to the performance of both MADDON and the Corporation, on June 30, 2004 the Compensation Committee may ▇▇▇▇▇ ▇▇▇▇▇▇ additional Future Options (50% will, except for the exercise price and the four year vesting period, which will start on June 30, 2004, be the same as the Traditional Options and 50% will, except for the exercise price and the milestones, be the same as the Milestone Based Options) subject to the same terms and conditions as specified in this Section 5.

  • All Traditional Options, Milestone Based Options and options to purchase securities of the Corporation hereafter granted to MADDON (whether in the form of or similar to Traditional or Milestone Based Options or otherwise, and notwithstanding anything to the contrary contained in any agreement or plan relating thereto) (collectively, the “Options”) shall vest and become fully exercisable immediately upon any "Change in Control".

  • The balance of the Traditional Options (386,365 shares if MADDON elects to receive ISOs as provided above) will be in the form of non-qualified options ("NQOs") at an exercise price of $4.00 per share.

  • In addition to the Traditional Options, since June 29, 2003 the Corporation has granted to MADDON under the Corporation's 1996 Stock Incentive Plan, as amended, irrevocable NQOs to purchase shares of the Corporation's Common Stock (the "Milestone Based Options") which vest upon the achievement of certain clinical, financial and operational milestones set forth in the accompanying option award agreement.

  • In addition to the Traditional Options, the Corporation hereby agrees to grant to MADDON under the Corporation's existing or new stock option plan irrevocable NQOs to purchase up to 500,000 shares of the Corporation's Common Stock at a price of $4.00 per share (the "Valuation Based Options").

  • Except as provided herein or as may be required under Section 422A of the Code with respect to ISOs, neither the Traditional Options nor the Valuation Based Options shall be subject to any limitations under any stock option plan or otherwise on the post-employment period during which such options may be exercised or to any repurchase rights by the Corporation.

  • The Traditional Options and the Valuation Based Options (collectively, the "Options") will be set forth in one or more written stock option agreements to be executed and delivered to MADDON contemporaneously with the execution and delivery of this Agreement.