Options Dealers and Contracts

by David Jenyns on May 13, 2007

Options Dealers and Contracts
The option-dealer is a middleman; he arranges for the purchase of and/or sale of options between a possible buyer and a seller. Practically all the orders for the purchase and sale of Put and Call options come to New York, where they are executed by members of the Put and Call Brokers and Dealers Association, Inc. As previously explained, this association consists of approximately twenty-five members who deal exclusively in Put and Call options, and all of the options in which these members deal are guaranteed by member firms of the New York Stock Exchange. Option contracts are traded in units of 100 shares, not in odd lots, and they are made for periods of 30 days, 60 days, 90 days, 6 months plus, and, occasionally, for one year. Puts and Calls are usually done at the market.

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