Transferable Option Law and Legal Definition

In an option market, the term transferable option refers to a contract that permits a position in the option market to be offset by a transaction on the opposite side of the market in the same contract.

The following is an example of a case law referring to transferable option:

The fact that the stock option was able to be passed on the death of the holder did not make the option a transferable option. [Greene v. Dietz, 143 F. Supp. 464 (D.N.Y. 1956)].