Sentences with phrase «above call strike»

The stock reverses and circa a week before expiration it stays above call strike.

The protective collar works like a charm if the stock declines, but not so well if the stock surges ahead and is «called away,» as any additional gain above the call strike price will be lost.

Not exact matches

The downside to the structure is if that the stock rises far above the higher strike call of $ 67.50, the trader will see losses (unlike in a traditional call spread, which would simply cap the profits.)

When investors buy call contracts, they are hoping the stock will rise above the strike price by more than the cost of the trade.

In exchange for this income, the writer of the call gives away any potential upside above the option's strike price.

For a call to make money, the price must be above the strike price at the expiry time.

She / he finds one that offers a 60 % payout if the option expires above the strike price (call option), but if the price is below 1,800 at the expiry time, she / he will lose 90 % of the investment.

In this case the price of the underlying asset is beneath the strike price of the option in the case of call options or above the price of the option in the case of put options.

When this event happens, you will be in - the - money if price records a value just one unit above your strike price for a «CALL» option or one point beneath for a «PUT».

This means that if you own the 100 shares and the stock prices rises above the strike price your shares will be called away.

If the underlying stock rises above the strike price any time before expiration, even by a penny, the stock will most likely be «called away» from you.

This is the same expiration and the same strike price as the call example above, but this contract is a put.

This means that if you own the 100 shares and the stock prices rises above the strike price your shares will be called away.

The first thing you will notice in the examples above is that although the strikes and expirations are the same for the call and the put, the put is much more expensive to buy.

When the ETF finishes above the strike price (for example, you wrote a $ 75 covered call and the ETF closes at $ 78 on its last trading day), the person who owns the long call will exercise his or her right to buy your stock ETF at $ 75 per share, which forces you to sell it with an options assignment.

We can write 1 130 coffee call with less time and buy 1 coffee 130 call with more time in the anticipation that the market will trend higher, but not above the 130 strike before the first options on futures expiration.

If, however, the stock rises above the strike price at expiration by even a penny, the option will most likely be called away.

If the underlying stock rises above the strike price any time before expiration, even by a penny, the stock will most likely be «called away» from you.

However, if the stock rises above the strike price, the holder of the call option will buy the shares from you for $ 52.

Every dollar July Crude moved above your strike price, your call option position would gain $ 1,000 of intrinsic value.

In the previous example the strike price ($ 25) was above the stock price ($ 23.12), which is the very definition of an «out - of - the - money» (OTM) covered call.

One negative of this strategy is that if your stocks rise by more than 5 % in 1 month then you will either have to buy the options back (potentially at a loss) or let the stock get called away (in which case you've still made at least 5 % on that position for that month but have forfeited any gains above the strike price (see Covered Calls For Dummies for more info).

Out - of - the - Money Option An option with no intrinsic value, i.e., a call whose strike price is above the current futures price or a put whose strike price is below the current futures price.

As long as CTL stays above the strike price of 27 you are protected by the call option.

The covered call investor participates in the upside from 46 (purchase price) to 50 (strike price), but then stops gaining additional profits for every stock price above 50.

This means that a put seller is assigned 100 shares of the stock if it is assigned to him and a call seller has to sell 100 shares for each contract that expires above his strike.

Covered call sellers gained extra profit if the stock does not rise above the strike price.

If the strike price of a call is above the price of the stock, the call is out - of - the - money.

Options are referred to as being «in the money» when the price of the underlying stock is above the strike price of a call option, or is lower than the strike of a put option.

All 10 will finish above their strikes today which means I won't be assigned any of the puts and all three covered calls will force the sale of my shares...

Even if the underlying is a no - dividend - paying stock, its price is still going to fluctuate, so that there is a higher chance that the American call could be exercised above the strike price than the european, since there is simply a higher chance that S is going to be higher than X on any given day during the period until expiration than ONLY on the day of expiration.

If the share price appreciates (above the strike price) you sell the shares for a capital gain (option buyer exercises the call option).

The Risk: Writing OTM covered call provides the writer with options income and the writer is only obligated to sell the underlying security if the stock closes above the strike price at the time of expiration.

If the stock rises ends above the strike price at expiration and is called, you sell the stock at a profit, while still keeping the premium.

For a call option, the option is in - the - money when the market price of the underlying security is at or above the option's strike price.

Stock above the strike price If ZYX advances to 50 at expiration, the covered call writer, upon assignment, will obtain a net profit of $ 875 per contract (the exercise price of 45 less the price of the stock when the option was sold plus the option premium received of 3 1/4 X 100).

The maximum profit from an out - of - the - money covered call is realized when the stock price, at expiration, is at or above the strike price.

In exchange for this income, the writer of the call gives away any potential upside above the option's strike price.

If the strike or target price of the contract that you are buying is above the current price, then you are buying what is called an out of the money option.

This is not a covered call trade, it is merely a large directional bet that DAL will close above $ 51.85 (strike + cost of call option) before May 20 (expiration):

The whole idea here is that you sell call options that are «out - of - the - money», meaning that the strike price is above the current exercise price.

An option that has intrinsic value.A call option is in - the - money if its strike price is below the current price of the underlying futures contract.A put option is in - the - money if its strike price is above the current price of the underlying futures contract.

Note that as long as the value of the underlying ETF, in this case, XIU, is trading above the strike price, the owner of the call option will exercise the option to capture any gain.

The $ 52.50 call strike price provides a cap for the stock's gains, since it can be called away when it trades above the strike price.

As a seller (writer) of a put option or call option, the Fund will lose money if the value of the stock index futures falls below or rises above the respective option's strike price.

In return for this lower risk, you give up gains if the stock goes above the higher calls strike price.

In the money means that a call option's strike price is below the market price of the underlying asset or that the strike price of a put option is above the market price of the underlying asset.

Short futures contracts are preferred over long put options when analysis points to the significant likelihood of the index staying just above the strike price plus call premium.

With a long put option, the maximum loss is when the option expires worthless as the index stayed above the strike price plus call premium.

If Crescent Point shares are trading at $ 14 or above on May 19, the covered call writer would then be forced to sell their shares at the strike price.