Index Option
A call or put option on a financial index.
Investopedia Commentary
Investors trading index options are essentially betting on the overall movement of the stock market as represented by a basket of stocks. Options on the S&P 500 are some of the most actively traded options in the world.
Related Links
Options Basics Tutorial
Index Investing Tutorial
See also: Index, Index Fund, Index Futures, Option, QQQ
Also spelled: Index options
index option