Sentences with phrase «call option expires»

The other positive news is that if the markets go down, and the index call option expires worthless, you don't lose any money.

If the stock is at or below $ 50 on option expiration day then the call option expires worthless.

Ideally, a covered call option expires worthless and you simply pocket the premium.

At about 50 cents a pop, the aforementioned VIX call options expiring in 13 days have only been this cheap on a couple of occasions since the start of 2011, and not in three years, according to data compiled by Macro Risk Advisors.

Quick review (if you need a longer explaination, see the covered call tutorial): (1) you need 100 shares of stock or ETF, (2) you then sell 1 call option (because options control 100 shares) against the stock / ETF you own, and then (3) at expiration you may end up having your stock called away (and receive cash) or you may end up owning your stock and having the call option expire worthless (in which case you can sell another call for the next cycle).

When the option expires you may end up having your stock called away (and receive cash) or you could end up owning your stock and having the call option expire worthless (in which case you can sell another call for the next cycle).

The share price never reaches the strike price of $ 58, and my call options expire worthless.

For example, the fund owns shares in Bank of Montreal (BMO) and has written call options expiring in June 2011 with a strike price of $ 62 and $ 64.

Then the call options expire worthless and we get to keep the shares and keep the money from selling the call.

I try to collect premiums only and want the call option expire worthless.

Not exact matches

Leo just refused to let it die, and after the option expired, in 2011 Scott Lambert called a meeting with everybody — me, [DiCaprio's manager] Rick Yorn, Leo and Alexandra — at the Polo Lounge.

But instead of pocketing a huge profit, he reinvested the money into Tesla call options that expire in January 2015 with a strike price of $ 130.

If you sell me a September 2011 call option with a strike price of $ 19 on your XIU ETF for a premium of 40 cents, it gives me the right, but not the obligation, to buy your XIU ETF from you at $ 19 at any time before the option expires.

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.

You spend $ 5,000 on this option, and purchase a call option — meaning you think the price will be above $ 500 when the contract expires.

When you sell a covered call, also known as writing a call, you already own shares of the underlying stock and you are selling someone the right, but not the obligation, to buy that stock at a set price until the option expires — and the price won't change no matter which way the market goes.1 If you didn't own the stock, it would be known as a naked call — a much riskier proposition.

Also, there was unusually high call option activity in the week before on out - of - the - money options that were about to expire worthless in a week.

If the call buyer does not exercise his or her right to buy the stock before the predetermined time, the options contract expires and the opportunity to buy the stock at the strike price will cease to exist.

You could sell a call option on Phillips 66 that expires in March with a strike price of $ 85, which trades for about $ 0.90.

He finds that the January $ 27.50 put option (meaning a put option expires in January with a strike price of $ 27.50) is trading at $ 2.95, and the January $ 35 call option is trading at $ 2.

However if the option is out of the money such as a high priced call, there is a high chance that the option will expire worthless, so will have a delta closer to zero.

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).

Your choices are to have ready cash to deploy which has a cost, buy back the call option, or wait for the option to expire when the shares might be more expensive to rebuy.

Rather than waiting years for your debt to expire and having to field stressful calls from collection agencies, consider using one of the debt - clearing options available to Delaware residents.

Calls: The buyer of a call has the right to buy the underlying stock at a set price until the option contract expires.

For example, if you owned 100 shares of ABC that was currently trading at $ 35 / share, and if you would be happy selling that stock at $ 40 / share next month then you would sell 1 call option with a strike of 40 that expires next month.

For example, if you owned a «January 50 call option on XYZ stock» then you have the right to pay $ 50 / share for 100 shares of XYZ stock any time you want between today and the 3rd Friday in January (monthly options always expire on the 3rd Friday).

If you split the group of 10 stocks into 2 groups of 5 and write calls on each group that are 2 months out then you will have 5 expiring options every month in addition to the 4 dividends every month, for a total of 9 payments / month.

For example, a «February 35 call option on XYZ stock» gives the buyer of the call option the right to pay $ 35 / share for 100 shares of XYZ stock any time between now and the 3rd Friday in February (monthly options always expire on the 3rd Friday of the month).

Over the next six months, if the stock never increases to $ 52, the call options will expire worthless: you get to keep your shares in BigBank, any dividends the company paid, and the $ 1,200 premium.

Then I sell a call option with a strike price of $ 100, expiring one year later, for a premium of $ 10.

If prices didn't rise before the option expired, the value of the call would drop to zero, expire worthless in the owners» hands, and you would keep the entire premium the buyer originally paid you.

Choosing an expiration month: If you are buying stocks for the purpose of writing short - term calls against them, then you probably want to stay away from options that have earnings releases before the option expires.

Although it is a less expensive way to own the stock, there are at least two significant risks: (1) time decay will eat away at the value of your deep in the money calls as time passes, and (2) the stock could drop and then not recover before the options expire.

For example, an investor buys one XYZ call option with a strike price of $ 10, expiring next week for $ 1.

If the underlying moves up and the option expires, a call option will now have a 100 Delta and the corresponding put will have a 0 Delta.

Now, if MMR is over 15 on Mar 19 (when the March options expire) then it will be called away and you will receive $ 15 / share, or $ 15000:

Now, if LULU is over 42 on Nov 20th (when the November options expire) then it will be called away and you will receive $ 42 / share, or $ 4200:

For the downside case, the covered call investor shows a profit if the stock is $ 43 or higher when the option expires.

For example, an ABC January 2008 25 call would refer to a call option on ABC with a strike price of 25 that expires in January 2008.

With two weeks to go until August's options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):

I have 10 options expiring today — seven puts and three calls.

With about 3 weeks to go until the March options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):

This is called «letting the option expire.»

Intel Corporation (INTC)-- Covered Call Intel Corporation closed on Friday at $ 21.12, and with a strike price of $ 22.00, my option expired.

I have three options set to expire in December — 10 TLT naked calls, one SPY covered call and one MDY covered call.

I only have three options expiring — two puts and one covered call.

Optionality An option gives the right to buy («call») or sell («put») shares at a fixed «strike» price, but only before an agreed date when the option expires.

With 3 days to go until this Friday's weekly options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):

With 2 weeks to go until November's options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):