InvestorWords.com

capped-style option


Definition
An option with an established profit cap. A capped-style option is automatically exercised when the underlying security closes at or above the option's cap price for a call, or at or below the option's cap price for a put.


Related Videos




Search for another term


Related Terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z