Exchange-traded options (ETOs)
Exchange-Traded Options (ETOs) are a derivative product issued over existing shares with each option being for a parcel of 1,000 shares in the underlying companies shares. There are two kinds of ETOs – CALL options, giving the buyer the RIGHT to buy shares at a specific time and price, and PUT options, giving the buyer the right to sell shares in the company. All ETOs will have a Strike Price and an Expiry Date. They are generally only issued over large cap stocks with good liquidity. See: Company options and exchange-traded options, what's the difference?