Sentences with phrase «call premium received»

The strategy only provides limited protection when the stock price declines significantly, as the decline of the underlying stock portfolio is partially offset by the call premium received.

The call premium received ($ 3.90 / share) lowered his cost to $ 30.10 ($ 34 - $ 3.90).

The covered call writer's position will begin to suffer a loss if the stock price declines by an amount greater than the call premium received.

Not exact matches

Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received.

The equity risk premium is the higher return an investor receives, above the so - called riskless rate.

Our premium members receive not only analysis on resource companies, but intermediate timing calls as well.

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The seller of a call option may be obligated to fulfill the terms of the contract and sell the underlying stock at a specific price in exchange for the premium they have received.

You determine the strike price in advance, and set it to something that you would be comfortable selling your stock for (although the higher the strike price, the lower the call premium you will receive).

Because they are OTM you still have room for upside potential, in addition to receiving the call premium each month.

Instead, we set up an asset called «deferred charges applicable to assumed reinsurance,» in an amount reflecting the difference between the premium we receive and the (higher) losses we expect to pay (for which reserves are immediately established).

In a bull call spread, the premium paid for the call purchased (which constitutes the long call leg) is always more than the premium received for the call sold (the short call leg).

Selling call options is a way to generate some income and at the same time get a little bit of a hedge because of the premium you receive.

In the context of covered call investing, the «interest» is the option premium you receive and the «compounding» is the fact that you reinvest your gains each month.

By selling the covered call you are reducing your cost in the stock by the amount of premium you receive.

And, of course, the more protection you choose the less call premium yield you will receive.

Covered call option cash flow for any portfolio will vary depending on actual portfolio positions, option premiums received, individual security price volatility, and general stock market volatility.

Option overlay: An investor that sells an index call option incurs a liability in exchange for the up - front receipt of the option premium received.

The holders of the 10 % bonds would receive their principal back (and probably a small call premium), but they would then have to find other investments, none of which would probably pay as well as the Company XYZ bonds.

For an option trading at $ 3.50, the call writer receives the premium of $ 350.

While the reward is generally limited to the premium received minus trading costs, an investor who writes a covered call continues to own the underlying stock.

You receive money for selling the options (called the option premium).

Writing index call options is designed to reduce the fund's volatility relative to U.S. equity securities and provide the fund with gains from premiums received.

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).

Stock below the break - even point If ZYX is trading at 34 at expiration, the unexercised LEAPS ® calls would generally expire worthless and the unassigned covered call writer would have a theoretical loss of $ 1,125 (a present theoretical loss of $ 2,750 on the stock position less the $ 1,625 premium received).

The break - even point for this covered call strategy is 36 1/4 (the stock price of 39 1/2 less the premium received of 3 1/4).

The downside protection for the stock provided by the sale of a call is equal to the premium received in selling the option.

The option writer receives payment, called a premium.

Faced with receiving a lower call price (par plus a call premium) or higher valued shares the investor is forced to convert into common shares.

The maximum profit obtained from a bear call spread is the net credit received, which is the difference between premium received and premium paid; and the maximum loss of this strategy is equal to the difference between spread and net credit.

While it remains unknown to most investors, it is in fact safer than outright stock ownership because the investor's downside risk is offset by premium income received for selling the call provision.

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The premium you receive on the covered call helps offset the cost of the protective put.

I will not only keep my 100 shares but I keep the premium I received for writing the call ($ 46.02).

The premium is based on a formula that compensates the investor for future coupon payments that it will not receive because the bonds have been called.

I then sold a covered call with a strike price of $ 15 for which I received a premium minus commission.

A covered call writer foregoes participation in any increase in the stock price above the call exercise price and continues to bear the downside risk of stock ownership if the stock price decreases more than the premium received.

I should've waited longer probably, but decided that since I am only selling six puts that would cost me around $ 5,125 (subtracting the premiums I received) I could sell covered calls if assigned while also selling new naked puts at a lower strike to dollar cost average down some and reduce my per share price.

As a call writer, the profit you can earn is limited to the premium amount received but the loss you can face is unlimited.

If the stock price remains unchanged, you keep your shares and the premium you received from selling the call.

While it remains unknown to most investors, it is in fact safer than outright stock ownership because the investor's downside risk is offset by premium income received for selling the call -LSB-...]

This caps the gain for the call option seller based on the premium received which is equal to 25 % of the portfolio in this strategy.

For call option writers, a rise in the price of the underlying security will be offset, in part, by the premium received from the call option buyer.

To implement a 25 % covered call strategy, the portfolio writes call options on 100 ABC shares (one contract) and receives $ 200 in premium.

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If you're not happy with the policy for any reason or want to add something to the policy like a child rider, call customer service to cancel and receive ALL your premiums back.

You'll also want to take into account how long you want to receive checks, which is called the benefit period, and you could pay less in premiums if you go with a disability insurance policy that has a longer elimination period, the length of time before benefits kick in.

If do own a policy and you die (having paid your premiums on time), your beneficiaries receive a payout called a death benefit that'll replace any income you provided in life.

The price that you receive for that period is called the premium.