Option is a condition precedent in the contract on sale of securities, according to which one party may during the option period express the will to confirm the contract (the publication of the option) or on the contrary silently withdraw.
For the establishment of option rights, a payment (option premium) can be arranged, which must be paid regardless of whether declared or not an option. The right of option is transferrable; if transferred, goes with it both rights and obligations under the contract on security purchase. The transition of liabilities does not require the consent of the lender. If the options are traded themselves, separate security is issued - in the Czech Republic not yet treated by law.
Similar to options in the Czech Republic are warrants, which may be published by the JSC. It is a security which gives the right to exercise pre-emptive right to subscribe for new shares or to acquire convertible bonds or preferred or to subscribe for shares that are issued to holders of priority bonds.