Delivery Option
A feature added to some futures contracts permitting the short position to determine the combination of timing, location, quantity, and quality of the underlying commodity stated in the delivery notice.
Investopedia Commentary
A delivery option provides a great deal of flexibility for the deliverer of the underlying commodity, but it poses a risk for the investors expecting delivery of the underlying.
Related Links
Futures Fundamentals
Interpreting Volume for the Futures Market
Becoming Fluent in Options on Futures
Getting Started in Foreign Exchange Futures
See also: Approved Delivery Facility, Basis Grade, Certificated Stock, Delivery Instrument, Delivery Notice