The price is
called a strike price.
A futures contract is a contract between two people that involves buying or selling a specific asset for a given price today (
called the strike price), and paying for it at a later date (called the delivery date).
Purchasing options contracts is essentially placing a bet that the price of the stock will hit a predetermined level,
called the strike price, within a given time frame.
The buyer of an option will acquire the right to be long or short a futures position at a particular price
called the strike price, by a specific date which is the expiration date.
The specific price at which an underlying stock can be purchased or sold, by virtue of an option, is
called the strike price.
The predetermined price is
called the strike price and the predetermined time is called the expiration date of the option.
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.
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.
In this case, you'd buy the stock at $ 43 (long
call strike price) and sell it at $ 48 (short
call strike price.)
The price is
called a strike price.
In return for this lower risk, you give up gains if the stock goes above the higher
calls strike price.
It gives you the right to buy an asset (such as a share), at a set price (
called the strike price), on or before a date in the future (the expiry date).
From 2013, they will also fix returns for generators,
called a strike price.
Not exact matches
In attacking Berkshire, Ackman was
striking back after Buffett's business partner Charlie Munger last year
called Valeant «deeply immoral» for its practice of raising drug
prices, sparking a sort of long - distance feud over whose favorite stock was better.
Over the past week, investors have bought more than 37,000
calls at the January 20
strike price in Regions Financial, according to Jon Najarian, Najarian Family Office co-founder and «Halftime Report» contributor.
More than 10,000 Bed Bath & Beyond
call options with a January 22
strike price were purchased on Thursday for between $ 0.77 and $ 0.95 per contract.
When investors buy
call contracts, they are hoping the stock will rise above the
strike price by more than the cost of the trade.
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.
HEX writes
call options on most of its portfolio, usually with a one month maturity and at a
strike price slightly higher than the prevailing market
price.
Here's a quick review of how they work: An ETF of, say, three stocks writes (sells)
call options on the three firms at a fixed «
strike»
price and for a premium.
Sometimes, it makes sense to sell a
call option with a
strike price that is much higher or «further out of the money» than the current market
price or to select a three - month term instead of a one - month.
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.
In exchange for this income, the writer of the
call gives away any potential upside above the option's
strike price.
For example, if the stock is callable at $ 100 and the shares are trading very close to that (say, at $ 99), the likelihood that the stock will be
called soon is much higher than if the stock were trading at $ 89 (further away from the
strike price).
If you had chosen «
Call» and the
price of the asset is higher than the
strike price, at the end of the contract period, you win the trade.
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.
Covered
calls provide downside protection only to the extent of the premium received and limit upside potential to the
strike price plus premium received.
For a
call to make money, the
price must be above the
strike price at the expiry time.
To understand the effect of this modest shortfall in stock selection performance over the past 8 months, recall that when the Fund is hedged against the impact of market fluctuations (and provided that our long - put / short -
call index option combinations have identical
strike prices and expirations), its returns are roughly equal to:
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.
Let's say you buy a
call option, which gives you the right to purchase Apple at a
strike price of $ 500 per share by the end of the month.
The
strike of the
call options was $ 120, which is not very far from the current
price of about $ 117, so the premium paid was huge.
Advice: Let's say you had one contract of
call options on Microsoft with a
strike price of $ 20 per share.
This describes an option where the
price of the underlying is greater than the
strike price of the option, in the case of
call options and below the
price of the option in the case of put options.
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.
Kuwait's oil production is almost back to capacity one day after workers
called off a
strike that had disrupted output and sent
prices rising.
Dell was using options as a way to be «long» its own stock without shelling out much cash (buying a
call and selling a put at the same
strike price is an «equivalent long position», as option traders would say).
The first, known as the upper breakeven point, is equal to
strike price of the
call option plus the net premium paid.
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».
For instance, assume that you have triggered a «
CALL» binary option using the EURUSD currency pair with a
strike or opening
price of 1.2600.
Out - of - the - Money Amount in case of a
Call option equals: Max (0, Option
Strike Price - Underlying Future
Price)
This means that if you own the 100 shares and the stock
prices rises above the
strike price your shares will be
called away.
One example of risk - control is to use
call options, placing the
strike price at about the level where a breakdown in trend - following measures would be expected to occur, which provides a natural «contingent exit» if
prices deteriorate further, particularly if they deteriorate abruptly.
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.
In a richly valued market, that sort of risk control is most appropriately established using
call options having a
strike price situated at about the point where various trend - following measures would turn negative — what is known in finance as a «contingent position» because the position creates its own exit if the market deteriorates further without an interim recovery - and particularly if it deteriorates abruptly.
For fewer risk trades with
call option a trader should choose lower
strike price.
They each month sell nearest out - of - the - money S&P 500 Index
call and put options across multiple economically
priced strikes and update the overlay intramonth if new economically
priced strikes become available.
Of course, with a runner on second and David
Price in the stretch, maybe Salvador Perez isn't
called out on
strikes.
There would be a
price if the pitch would be a ball or a
strike, a
price if the batter would get a hit, or walk or make [an] out, a
price on scoring a run, etc.,» so
called «do they or don't they» bets that rendered the outcome of the game almost entirely irrelevant.
Dr. Peter Ozo - Eson, the General Secretary of the union, had disclosed yesterday that the major organs of the congress would meet to appraise the indefinite
strike called to protest the recent increase in the fuel pump
price from N86 to N86.50 k to N145.