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wild card option

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Financial Dictionary

Wild Card Option

An option associated with treasury bond or treasury note futures contracts that permits the short position to delay the delivery of the underlying.

Investopedia Commentary

This provision allows the short futures contract holder to announce his or her intention to deliver the underlying securities on any notice day before a specified time, which is later than the regular trading hours, in which invoice prices are normally fixed. The security that is delivered is usually the cheapest to deliver on that specific day.

Related Links

Futures Fundamentals
Becoming Fluent in Options on Futures

See also: Cash Commodity, Cheapest to Deliver, Delivery, Differential, FAB Spread, FAN Spread, Futures Contract, Short, Treasury Bond, Treasury Note, Underlying

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