equity option
Defined in 1 place of the United States Code.
Except as provided in subparagraph (B), the term “equity option” means any option—
(i) to buy or sell stock, or
(ii) the value of which is determined directly or indirectly by reference to any stock (or group of stocks) or stock index.
Source
- 1994–200026 U.S.C. § 1256Internal Revenue Code · Section 1256 contracts marked to market · for purposes of this section
The term “equity option” includes such an option on a group of stocks only if such group meets the requirements for a narrow-based security index (as so defined).
Source
- 2000–200526 U.S.C. § 1256Internal Revenue Code · Section 1256 contracts marked to market · for purposes of this section
The term “equity option” includes such an option on a group of stocks only if such group meets the requirements for a narrow-based security index (as so defined). The Secretary may prescribe regulations regarding the status of options the values of which are determined directly or indirectly by reference to any index which becomes (or ceases to be) a narrow-based security index (as so defined).
Source
- 2005–present26 U.S.C. § 1256Internal Revenue Code · Section 1256 contracts marked to market · for purposes of this section
The term “equity option” means any option—
(A) to buy or sell stock, or
(B) the value of which is determined directly or indirectly by reference to any stock or any narrow-based security index (as defined in section 3(a)(55) of the Securities Exchange Act of 1934, as in effect on the date of the enactment of this paragraph).
Source
- 2000–present26 U.S.C. § 1256Internal Revenue Code · Section 1256 contracts marked to market · for purposes of this section