Sentences with phrase «current strike price»

Selling a put below the current strike price gives the seller a little cushion if the stock does dip.

Not exact matches

The deal is already favourable to the French: the agreed - on strike price for Hinkley C's electricity — around $ 150 per megawatt hour — is double current energy rates and could increase further if another U.K. nuclear plant currently on the drawing board is not built.

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.

Again, however, we continue to have a put option defense below about 90 % of our stock holdings with strike prices within a few percent of current levels, which should relieve any concern about unacceptably large downside exposure.

This means, for example, that underwater stock options aren't included in the diluted EPS calculation, but stock options that are eligible for conversion and have a strike price below the current market price are.

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.

This describes an option where the current price of the underlying asset equals the option's strike price.

The entire value of the Strategic Growth Fund remains hedged with put options having strike prices roughly 2 % below current market levels.

There are striking parallels between Buhari's first stint in power as military dictator and his current democratic presidency - oil prices have crashed; appointments have favoured the North; important political allies have been displaced; governance is focused almost exclusively on a war against corruption; concerns over rule of law and human rights are re-surfacing; and economic policy is floundering!

In which case, there's no reason to sell «razors» at all, especially since Android Tablets will be made out of commodity parts, will use cheap LCD display technology and will be far more capable, and many will be priced in the $ 200 - $ 300 range and well within striking distance of the current price of dedicated e-readers.

A put option with a strike price of 50 dollars has no real benefit with the current stock priced at 52.

For in the money (ITM) options, time premium is call strike plus the call bid minus the current stock price.

For in the money (ITM) options, intrinsic value is the current stock price minus the strike.

I'm looking at a specific (American - style) warrant of a company and let's say I see something like the following: Warrant Bid / Ask: 0.30 $ / 0.35 $ Strike Price: 15 $ Current stock price: 16 $ ExpiratiPrice: 15 $ Current stock price: 16 $ Expiratiprice: 16 $ Expiration...

With the price of oil dropping to new 5 - year lows today, and new concerns about Greece / Euro, now would be a good time to consider some in - the - money covered calls (where the strike price is below the current stock price) so that you can earn some premium but also have a bit more downside protection working for you.

(One of which is being nice to the employees in regards to taxes since there is no US tax due at grant time if the strike price is the current price of the underlying stock.)

Buy put options with a strike price lower than current price.

The upshot is that I'm already looking at a non-trivial spread between my strike price and the current FMV, which raises the possibility of running into the AMT.

A put option is in - the - money if its strike price is above the current price of the underlying futures contract.

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.

Deep In the money calls are those where the strike price of the call option is significantly less than the current stock price.

moneyness, or the distance from the strike price to the current stock price at the moment you write the option (not all of these have $ 1 strike increments, so you can't always choose an option that is exactly 5 % out - of - the - money, but all of the above are at least 5 % OTM)

At - the - Money Option An option with a strike price that is equal, or approximately equal, to the current market price of the underlying futures contract.

Note that even if MMR fell from its current 16.91 down to 15 (the strike price of the options you sold) you would still make the $ 540.

Selling out of the money calls (where the strike is higher than the current stock price) is the way to accomplish this.

A call option is in - the - money if its strike price is below the current price of the underlying futures contract.

For out of the money (OTM) options, upside potential is the strike price minus the current stock price.

Note that even if LULU fell from its current 44.25 down to 42 (the strike price of the option you sold) you would still make the $ 115.

Exercise price: The increments between the strike prices that are available on an equity options contract depend on the current market price of the underlying stock.

If you are conservative you'll want to look at the rows that have a dark grey background in the Call Strike column — those are in - the - money options (where the strike is lower than the current stock price) that have more downside proteStrike column — those are in - the - money options (where the strike is lower than the current stock price) that have more downside protestrike is lower than the current stock price) that have more downside protection.

For call options, «in the money» means the strike price is lower than the current stock value.

If the stock's current price is greater than the option strike price, the remainder is the intrinsic value.

Whether an in the money strike price is higher or lower than the current stock value depends on the type of option contract purchased.

The intrinsic value is an easy calculation - the market price of an option minus the strike price - and it represents the profit that the holder of the option would enjoy if he or she exercised the option, took delivery of the underlying asset and sold it in the current marketplace.

In options trading, the term «moneyness» refers to the relationship between an option contract's strike price and the current market price of the underlying stock.

This cash - secured put sale would assign long shares at $ 1.75 ($ 2 strike minus $ 0.25 premium), which is about 30 % below RSH's current price, costing you $ 175 per option sold.

The plan my company offers has a «strike price or current price, whichever is cheaper» formula — nice, but it forced us to treat every purchase as a separate offering.

The intrinsic value is simply the amount by which the stock's current price is higher than the call strike - it's the current discount to the stock's price that you get if you exercise the call, thereby purchasing the stock at the strike price.

Of course, you can always buy more stock at the current price and sell it at the put strike price if you want to keep your original stock and just want to «cash out» the long put.

One is the intrinsic value which is the difference between the strike price and the current underlying price.

Knowing more about in the money, out of the money and at the money in relation to the current market and strike prices will make trading binary options easier and hopefully, more profitable.

Some of these are stable, such as the price of the underlying asset, the strike price and the current interest rate.

LEAPS ® are initially listed with three strike prices, at the current price and 20 to 25 % above and below the price of the underlying stock.

A call option is in - the - money if its strike price is below the current market price of the underlying security.

Look up the strike price that is nearest your target price or the price you think the company is worth per share of stock (remember that current prices should be below your target 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.

If the price of the security falls below the strike price before the expiration date, the buyer exercises his option and sells the security at the strike price thus saving himself from the loss of selling at the lower current market price; however, if the price of the security remains the same or increases, he can choose to not exercise the option and earn profit.

For example, if the stock of Wipro is trading at $ 273 per share and the trader enters into a call option contract to buy the shares at, say, $ 275, then the buyer of the call option has the right to buy the stock at $ 275 which is considered as the strike price, irrespective of the current stock price, before the contract expires on, say, April 30.

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.