Sentences with phrase «at the exercise price when»

Also, there are specific risks associated with covered call writing including the risk that the underlying stock could be sold at the exercise price when the current market value is greater than the exercise price the call writer will receive.

Further, the specific risks associated with selling cash - secured puts include the risk that the underlying stock could be purchased at the exercise price when the current market value is less than the exercise price the put seller will receive.

Also, the specific risks associated with selling cash secured puts include the risk that the underlying stock could be purchased at the exercise price when the current market value is less than the exercise price the put seller will receive.

Not exact matches

When the exercise request is entered, the option position is closed at price 0 and a position in the underlying instrument is created at the strike price.

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).

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.

No, a call option is when someone purchases the right to buy the stock at the exercise price.

In such a case, an employee who exercises immediately upon grant (and assuming the exercise price of the option is the FMV at the time of grant) purchases the stock at FMV, and there no no tax paid when filing 83 (b) election.

When a holder exercises a put option, the writer of the option must buy the underlying stock from the holder at the predetermined price.

Exercise price: The price at which the trade is executed when the option is exercised.

When he decides he wants your stock at that price he will call his broker and exercise his right to force you to sell your stock to him at the strike price.

When a holder exercises a call option, the writer of the option must sell the underlying stock to the holder at a predetermined price.

When stock drops below strike price of put, either buy shares at new low price and exercise the...

Otherwise, if I buy the underlying at a much earlier time when I can not make sure the market price will be lower than the striking price in the future, I may lose money when exercising.

The term is used for options on stocks or futures contracts when the price of the underlying market is at or beyond a certain level, making it possible for the option to be exercised, or converted into that underlying contract.

Conversely, when you sell a call option, you must sell shares of the underlying stock at the specified price when the option is exercised.

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).

During the dot - com era, when stock prices soared to dizzying heights, employees could have a stock option that was granted at less than a dollar but that he or she exercised at more than $ 100 a share.»

When stocks the fund owns go up, holders of its call options will exercise their right to buy the stock at the agreed - upon lower price.

If the market closes at 2200.00 on Friday and the option is exercisable, you can sell the futures at 2200.00, and when the option is exercised (it's in the money and is automatic at expiration) you will receive an offsetting futures contract at your strike price of 2175.00 (long the futures at 2175.00 and an offsetting sale at 2200.00 and will have made 25.00 points x $ 50.00 or $ 1250.00 minus what you paid for the option, let's do the math, 1250.00 — 300.00 = $ 950.00 less any exchange, clearing, NFA fees and commissions.

When an employee stock option is exercised, the stock option benefit (the difference between the exercise price and the fair market value of the share at the date of exercise) is included in income.

Conversely, a put option gives an investor the right, but not the obligation, to sell an underlying security at a specified price (strike) within a specific time period, therefore a buyer of a put may exercise the put and benefit when the underlying security goes below the option strike.

As the question of written «seller consents» is a major point, it is not only reasonable to believe that with all the Attorneys and high priced experts, at the trough, that the Tribunal had «not been persuaded» based on their proper review of current and preexisting written «seller consents» (that would have formed part of the pertinent Listing Agreements), but even moreso that: by using the word «persuaded» the Competition Tribunal wrongly gave the impression that they had exercised proper due diligence regarding this question — when in fact, they had not exercised any!