3. option whose owner has purchased the right to buy or sell a set number of shares of common stock (normally 100 shares) at a set price from a specified person any time prior to the expiration of the option is an is an option whose owner has purchased the right to buy or sell a set number of shares of common stock (normally 100 shares) at a set price from a specified person only at the specified date. is the act of selling options as an opening transaction. is the ability of participants in the futures and options markets to reverse their positions by making offsetting trades. This occurs because the individual contracts are standardized and interchangeable is a description of an option that has no intrinsic value. is the act by which an option holder expresses an interest to sell shares to the option writer at the specified price (with puts) or to buy shares from the option writer at the specified price (with calls)