Sentences with phrase «at option expiration»

At option expiration if the stock has stayed flat or gone up then income has been generated.

Not exact matches

In an identical way to when the roulette ball comes to rest, investors are either in - the - money or out - of - the - money at expiration when they trade binary options.

In contrast, if you predict that price will fall beneath its opening value at expiration, then you should activate a «PUT» option.

In other words, while the options would be assigned if the stock dropped below $ 40 at expiration, you wouldn't incur losses unless the stock fell below $ 39.60 — a drop of more than 10 % from the day the puts were sold.

In other words, while the options would be assigned if the stock dropped below $ 42 at expiration, you wouldn't incur losses unless the stock was below $ 41.20 — a drop of more than 6 % from the day you sold the puts.

You should initiate a «CALL» binary option if you deduce that price will rise in value so that its final value will be higher than its opening one by just one trading point at expiration.

Similarly, a put stock option gives its owner the right to sell the stock at the expiration date for a given price.

You will make a profit if a binary option finishes just a single price increment below (PUT option) or above (CALL option) its opening price at expiration.

Looking at April options we can calculate implied upside and downside closes on expiration.

When we are fully hedged, as we are at present (and provided that our long - put / short - call option combinations have identical strike - prices and expirations), the source of our returns is the performance of our favored stocks relative to the indices which we use to hedge.

Unless weekly options are available, standard equity options typically trade four months at a time: the front month (nearest expiration), the next month, and two future «cycle» months.

When you look at quotes on an option, you'll typically see the current calendar month (unless the current expiration has already occurred), the next calendar month, and (depending on the cycle) two separate months in the future.

The financial instrument does not have to be at this point when the option actually expires; the financial instrument reaching the specified point at any time between purchase and expiration is enough for you to get paid on a one touch binary option.

By writing this option, you are obligated to buy 500 shares of XYZ at any time until expiration for $ 45.

If you're curious about covered call writing, Investopedia defines it as the strategy of giving a buyer the option to buy your stock shares at a pre-determined price before the option's expiration date.

The price that the underlying asset must reach before or at expiration for the option to expire In the Money.

A type of binary option that pays out when the price of the underlying asset falls beneath the strike price of the option at expiration.

This type of binary option pays out if the trader can correctly predict whether the value of the underlying asset will fall within a certain range at expiration or not.

In contrast, you require the price of your «PUT» binary options to finish at least one point beneath its strike or opening price at expiration in order to collect a return.

You would then generate a window of opportunity between $ 10 and $ 14 whereby if both options could close favorable at expiration, you would collect a double payout.

This is because you will know precisely how much you can anticipate receiving at expiration even before your binary options are opened.

Consequently, price just needs to finish one trading tick in your favored direction above (CALL option) or beneath (PUT option) the opening price of your option at expiration for you to be in - the - money.

For instance, if at the expiration of the put contract the stock reaches your $ 70 price target, you might then choose to sell the stock for a pretax profit of $ 1,700 ($ 2,000 profit on the underlying stock less the $ 300 cost of the option) and the option would expire worthless.

In setting up the option, LedgerX is assuming a price of $ 10,000 at the time of expiration.

When the stock is trading at $ 65, suppose you decide to purchase the 62 XYZ Company October put option contract (i.e. the underlying asset is XYZ Company stock, the exercise price is $ 62, and the expiration month is October) at $ 3 per contract (this is the option price, also known as the premium) for a total cost of $ 300 ($ 3 per contract multiplied by 100 shares that the option contract controls).

These long - term options provide the holder the right to purchase, in the case of a call, or sell in the case of a put, a specified number of stock shares (or an equity index) at a pre-determined price up to the expiration date of the option, which can be three years in the future.

But when its contract was approaching expiration a few years ago, the town decided to give local parents the option of sending their children to private schools as well, and the town would cover tuition up to the amount that it was spending per pupil at the neighboring district school (about $ 12,000).

We will contact you prior to your expiration to let you know the best charging options available to you at that time.

Call options are tradable securities that give the buyer of the call options the right to buy stock at a certain price («strike price») on or before a certain date («expiration date»).

For example, if you buy 100 shares of AAL at 36.55 and sell 1 Sep 16 expiration, 35 - strike, call option for 1.85, your out of pocket cost (net debit) is 34.70 per share.

Early exercise is only possible with American - style option contracts, which the holder may exercise at any time up to expiration.

In contrast, the entire premium of an in - the - money option at expiration is its intrinsic value, since the time value is zero.

If we look at the sum of open interest by expiration date, we can see there is more interest in the monthly options than the weekly options:

Rolling involves buying back the existing options and selling new ones at different strike prices and / or expiration dates.

Buy to close: For option sellers, if you are short an option, you can buy to close the option at any time prior to the expiration date.

By selling call options, we would be giving the buyer of the option the right, but not the obligation, to purchase our 400 shares at $ 32.50 per share (the «strike» price) anytime before September 29 (the contract «expiration» date).

At expiration the time premium is zero, and the option either expires worthless or, if it's in the money, is exercised.

For example: someone who goes long cocoa at 850 can write a 900 strike price call option with about one month of time until option expiration.

An option to buy a commodity, security or futures contract at a specified price anytime between now and the expiration date of the option contract.

An option to sell a commodity, security, or futures contract at a specified price at any time between now and the expiration of the option contract.

There is another option, with a strike of 55 (same strike) and an expiration date that is 2 months farther out that is trading at $ 2.50.

Our highest profit would be attained at 135 based on options on futures expiration.

By selling the call option, I'm giving the buyer of the option the right, but not the obligation, to purchase my 100 shares at $ 55.00 per share (the «strike» price) anytime before October 20 (the contract «expiration» date).

If the market price closes higher than both strike prices at expiration, both options retire worthless.

If stock X is then $ 50 at the expiration date I would make no profit at all (the $ 5 I sold the option for is compensated by the $ 5 loss I made on stock X).

Let's say there is a stock of ABC currently at $ 8, and I sell a (naked) call option on it, with a strike price of $ 10 and expiration in two months.

If the option is European style (most indexes), they can only be exercised at expiration.

If the underlying stock is below $ 33 a share (the strike price) at all times before expiration, the option expires unexercised and you keep the stock and the premium.

That means that (1) you receive $ 15 / share in cash today, and (2) in 2 months time you will either lose your stock at $ 90 (plus the $ 15 you got today, for a total of $ 105 / share), buy back the call options (and perhaps sell others), or keep your stock and have the options expire worthless (if the stock is below $ 90 on option expiration day).

At any time before the expiration day you can «put» your shares to the person who sold you the option and receive cash per share equal to the strike price (even if the stock has gone to zero).