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Glossary > C > "Capped Option" Definition

Capped Option

An option with a pre-established profit cap. A capped option is automatically exercised when the underlying security closes at or above (for a call) or at or below (for a put) the Option"s cap price.

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Capped Option - An option with a pre-established profit cap. A capped option is automatically exercised when the underlying security closes at or above (for a call) or at or below (for a put) the Option"s cap price.

Capped Option : an option with a pre-established profit cap. a capped option is automatically exercised when the underlying security closes at or above (for a call) or at or below (for a put) the option"s cap price.