Equity Index Options
Interactive

Equity Index Options

Intuition Publishing
Updated Sep 24, 2020

Equity index options give the holder the right, but not the obligation, to buy or sell an underlying stock index. We outline index call and put options, and discuss the basic features of an index option. We demonstrate how they are traded using a sample scenario, and then illustrate some possible outcomes for the holder of an equity index put option in a short animation. We conclude our discussion of equity index options with a look at options on index futures contracts.