{"schema":"https://ver.cy/schemas/card/1.0.0","id":"vr.tr.option","code":"thing-option","url":"https://ver.cy/models/thing/option/","name":"option","alternateNames":["naked option","covered option","call option","call","put option","put","straddle","incentive option","incentive stock option","stock option","lock-up option"],"kind":"thing","status":"published","version":"0.2.0-wave.1","language":"en","classifiers":{"family":"Thing Registry","category":"Society, people and institutions","entryKind":"noun.possession","plane":"SOC","domain":["SOC.ECO"],"industry":[],"navPath":"","tags":["document"],"facets":{"substance":"social","origin":"conceptual","agency":"inert","mobility":"not-applicable","scale":"not-applicable","affordances":["readable"]}},"whatItIs":"A financial contract giving the holder the right, but not the obligation, to buy (call) or sell (put) an asset at an agreed price before or at a set date; options can be covered or naked and carry significant risk.","purpose":"Let an agent explain options factually by type, terms, pricing concepts and risks, without personal investment advice, and flag high-risk products.","scope":{"in":[],"out":[],"boundaries":[]},"distinguishingFeatures":["Right without obligation for the holder","Premium paid","Leverage and time decay","Writing naked options can mean large losses"],"structure":{"bundles":[{"id":"contract","name":"Contract","description":"Terms.","layers":[{"id":"type","name":"Type","description":"Call or put.","findings":[{"id":"type-finding","name":"Type","description":"Option type.","questions":[{"text":"Is it a call or a put, and on which underlying?","kind":"definition"},{"text":"Exchange-traded or OTC?","kind":"definition"}]}]},{"id":"terms","name":"Terms","description":"Strike and expiry.","findings":[{"id":"terms-finding","name":"Terms","description":"Key terms.","questions":[{"text":"What are the strike price, expiry and contract size?","kind":"measurement"},{"text":"Is it American or European style?","kind":"definition"}]}]}]},{"id":"value","name":"Value","description":"Pricing concepts.","layers":[{"id":"factors","name":"Factors","description":"Price drivers.","findings":[{"id":"factors-finding","name":"Factors","description":"Value drivers.","questions":[{"text":"Which factors affect the option value, in general terms?","kind":"definition"},{"text":"What is time decay?","kind":"definition"}]}]},{"id":"payoff","name":"Payoff","description":"At expiry.","findings":[{"id":"payoff-finding","name":"Payoff","description":"Payoff.","questions":[{"text":"What is the payoff at expiry for different prices?","kind":"measurement"},{"text":"What is the maximum loss?","kind":"boundary"}]}]}]},{"id":"risk","name":"Risk","description":"Losses.","layers":[{"id":"leverage","name":"Leverage","description":"Magnified losses.","findings":[{"id":"leverage-finding","name":"Leverage","description":"Leverage risk.","questions":[{"text":"How could leverage magnify losses?","kind":"boundary"},{"text":"What does the risk disclosure say?","kind":"provenance"}]}]},{"id":"writing","name":"Writing","description":"Selling options.","findings":[{"id":"writing-finding","name":"Writing","description":"Writing options.","questions":[{"text":"Is the user writing naked options with potentially unlimited loss?","kind":"boundary"},{"text":"Is margin required?","kind":"provenance"}]}]}]},{"id":"limits","name":"Limits","description":"No advice.","layers":[{"id":"advice","name":"Advice","description":"Boundary.","findings":[{"id":"advice-finding","name":"Advice","description":"Advice limit.","questions":[{"text":"Is the user asking whether to trade options?","kind":"boundary"},{"text":"How should the agent refer them to regulated advice?","kind":"action"}]}]},{"id":"employees","name":"Employee options","description":"Compensation.","findings":[{"id":"employees-finding","name":"Employees","description":"Employee stock options.","questions":[{"text":"Are employee stock options meant, with their own tax and vesting rules?","kind":"boundary"},{"text":"Who can advise?","kind":"action"}]}]}]}]},"agentConduct":{"may":["Explain how calls and puts work and the risks they carry, in general terms.","Report public option prices and contract terms from the exchange or issuer."],"mustNot":["Trade options on a person's behalf without their explicit instruction and authorization.","Give personalised recommendations to buy or sell options in place of a licensed adviser.","Present option strategies as low-risk or guaranteed to profit.","Help manipulate markets or trade on inside information."],"requiresHuman":["Placing, closing or exercising any option position.","Deciding whether options suit a person's finances."]},"ethics":{"considerations":["Options can lose a buyer's whole stake, and naked positions can lose more than was invested.","Inexperienced investors are drawn into risks they do not understand."],"affectedParties":["Retail investors","Counterparties","Market integrity"]},"owners":{"steward":"The holder and writer of each contract; the exchange or clearing house and the financial regulator oversee trading.","roles":[],"masterSystems":["Exchange and clearing house records","Brokerage account records"]},"relations":[{"target":"oewn-06492177-n","type":"parent","note":"registry parent class"},{"target":"derivative security","type":"related","note":"category"},{"target":"underlying asset","type":"related","note":"reference"},{"target":"financial regulator","type":"related","note":"oversight"},{"target":"option (choice)","type":"related","note":"another sense"}],"interaction":{"identity":{"applicability":"required","items":["Vercy registry: vr.tr.option","Open English WordNet: oewn-13262498-n"]},"properties":{"applicability":"not-applicable","items":[]},"recognition":{"applicability":"optional","items":["Call and put","Strike price and expiry","Option in the sense of choice is another sense","Contracts listed on exchanges or agreed over the counter."]},"capabilities":{"applicability":"required","items":["explain calls and puts","understand key terms such as strike and expiry","recognise risks of writing options","find regulated advice"]},"hazards":{"applicability":"required","items":["Large losses from leverage or naked writing","Misunderstanding expiry","Agents giving personal investment advice"]},"interfaces":{"applicability":"required","items":["EU MiFID II complex product rules","Exchange rules and clearing","Risk disclosure requirements"]},"context":{"applicability":"required","items":["Hedging, speculation and employee compensation (stock options).","call options","put options","covered and naked options","exchange-traded and OTC options","employee stock options"]}},"sources":[{"title":"Open English WordNet 2024, synset oewn-13262498-n","url":"https://en-word.net/id/oewn-13262498-n","note":"sense and gloss of the concept"},{"title":"Wiktionary: option","url":"https://en.wiktionary.org/wiki/option","note":"word senses and usage"}],"openQuestions":["Should option types be separate entries?","How should risk warnings be linked?","How should the choice sense be split off?"],"resources":{"spec":"/models/things/publications/thing-option/spec.json"},"provenance":{"origin":"thing registry research (pass 2)","builtFrom":["models/things/publications/thing-option/spec.json"],"providers":["Claude"],"researchStatus":"unreviewed","generatedAt":"2026-09-11T08:41:57Z","builder":"tools/build_cards.py@1.0.0"},"completeness":{"sections":{"classifiers":"filled","whatItIs":"filled","purpose":"filled","distinguishingFeatures":"filled","structure":"filled","agentConduct":"filled","ethics":"filled","owners":"filled","relations":"filled","interaction.identity":"filled","interaction.properties":"not-applicable","interaction.recognition":"filled","interaction.capabilities":"filled","interaction.hazards":"filled","interaction.interfaces":"filled","interaction.context":"filled","sources":"filled"},"notes":{"_gate":"Published through the thing publication gate 1.0 on 2026-10-07T12:16:27+00:00: completeness 1.00; sense: WordNet gloss; 2 live sources; review by codex: pass","interaction.properties":"Plane SOC: no invented physical properties."},"score":1.0}}