An option traded off-exchange, as opposed to a listed stock option. The OTC option has a direct link between buyer and seller, has no secondary market, and has no standardization of striking prices and expiration dates. See also Secondary Market.
Nearby TermsOver-the-counter (OTC) Over-the-Counter Bulletin Board Over-the-Counter Option Overtrading Overvalued
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University