Sentences with phrase «expiration day the option»

On the other hand, if XYZ does not drop significantly, and if it stays below 60 by expiration day then on expiration day the option will expire worthless and you've made $ 2 / share on the option trade.

It was worth $ 3 when we sold it but then on expiration day the option had $ 0 of time premium remaining.

Not exact matches

Although Friday was an options expiration day, volume ended the session mixed.

Max profit occurs if CLF is below 17 on expiration day, which is October 17 for this option.

On expiration day, October 17 for this option, if CLF is above 17 you will either need to buy back (cover) the call or you will be assigned -500 shares of CLF as a short position, with an entry of 17.

In other words, while the options would be assigned if the stock dropped below $ 40 at expiration, you wouldn't incur losses unless the stock fell below $ 39.60 — a drop of more than 10 % from the day the puts were sold.

In other words, while the options would be assigned if the stock dropped below $ 42 at expiration, you wouldn't incur losses unless the stock was below $ 41.20 — a drop of more than 6 % from the day you sold the puts.

European style option contract is an option contract which may be exercised on the expiration day on or before the expiration time.

«When to Sell Equity Index Put Options» summarizes research finding that the «insurance» premium from systematically selling equity index out - of - the - money (OTM) put options concentrates during the last few days before expiOptions» summarizes research finding that the «insurance» premium from systematically selling equity index out - of - the - money (OTM) put options concentrates during the last few days before expioptions concentrates during the last few days before expiration.

Can speculators squeeze the «insurance» premium from shorting equity index put options in just the few days before expiration?

I waited until the last day to close this option, as the stock hovered around the strike price as expiration neared.

NLC chairman, Akeem Ambali, said with the expiration of the 23 - day ultimatum given on September 29, «and with no concrete responsive from the government, we are again giving a fresh 72 hours ultimatum for the government to address our issues or be faced with total strike option by Thursday.»

Frank stated that the group was considering options following the expiration of a seven - day ultimatum given to the APC.

Normally an option holder would not do this; he would just wait until expiration day and then decide if he wants to exercise or not.

These contracts also have an expiration date, the day after which the option expires and literally no longer exists.

Expiration Date: The date on which a futures option expires and the last day an option may be exercised.

Your other choice in the example above would be to just wait until the original option you sold expires, and then sell a new option the Monday after expiration day.

A typical calendar spread strategy we use often would be to write 1 option with about 25 days left until expiration and buy 1 with 60 days left.

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).

At any time before the expiration day you can «put» your shares to the person who sold you the option and receive cash per share equal to the strike price (even if the stock has gone to zero).

After that period of time has elapsed (known as «expiration day»), the option ceases to exist.

An option is a contract that conveys to its holder the right, but not the obligation, to buy (in the case of a call) or sell (in the case of a put) shares of the underlying security at a specified price (the strike price) on or before a given date (expiration day).

To his horror, ABC is at $ 30 on expiration day and the option buyer is exercising his right to pay $ 25 / share for 100 shares.

European - style options can be exercised only on the option's expiration day.

The same day you buy the stock you sell a call option, agreeing to sell your stock for 65 if it's over 65 by Jan 21 (expiration date of the Jan option).

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

If the stock is over $ 50 on option expiration day then the person who bought your call option will exercise it — meaning they will buy your stock from you for $ 50 / share.

The red date (Jan 17) on the INTC row is warning us that there is an earnings announcement prior to the option expiration day (Jan 19).

The green dates (Jan 8) are telling us that there is an ex-dividend date prior to the option expiration day (and, yes, the return calculations do include the dividend payment along with the option premium).

If XYZ is over 60 on expiration day then you will be forced to sell your shares for $ 60 / share, so you made $ 7.50 / share on the stock and $ 2 / share on the option, for a total max profit of $ 9.50 / share (which is 18 % in 4 months for our example case).

If it's in the money on expiration day we'll ask ourselves if we still like the fundamentals enough to buy back the call option and sell another one with a higher strike.

The IRS definition of deep in the money is any option with less than 90 days until expiration where the strike is less than the first available in the money strike, or any option with more than 90 days until expiration where the strike is less than 2 strikes in the money.

Expiration month: Every options contract expires on a predetermined day in a predetermined month.

If we look at WMT's option chain, we will quickly notice that the expiration cycle with the longest duration is the January 2020 cycle, which has roughly 751 days left until expiration.

If a market which typically moves 17 points in a day has only moved 8 points in low volatility market, then a binary option with a strike price 15 points below the market price has a higher probability of staying in the money until expiration.

On expiration day if any of the options are in the money then they will be rolled just before market close.

The theta of options is also lower when there is less volatility, or more days to expiration.

Many brokers offer binary options trades with expiration periods ranging from 60 seconds to 1 hour and a day as well.

I didn't make any trades last week in my taxable account and am not sure I'll do much more until options expiration gets a little closer in a few days.

Usually these kinds of investors sell in the money options and they're hoping to be called out of most of their positions on option expiration day.

For years, that's been my typical move the first trading day after options expiration, but I'm staying patient on these as...

An option that can only be exercised on a specified date - normally the business day prior to expiration.

So n would be equal to the number of trading days before the Asian option's expiration date.

Note that MRK has an ex-dividend date the same day as the weekly option expiration.

June 21st was option expiration day and it was a day I was looking at very closely.

If the stock was below $ 32 on expiration day I would have had to purchase 100 shares at $ 32 but as the stock closed at $ 33.26 my option expired leaving me with the $ 40.01 and my capital invested returned.

For companies that typically release earnings on the cusp of monthly options expiration - either a few days before expiration or a few days after - it would appear the day that the earnings release date is announced may itself significantly affect monthly option prices.

Traditional options have an expiration range of a week to a couple of years, while binary options have an expiration range of less than a minute to a few days.

Also, the option writer has «time decay» working in his favor — meaning that the day the option is sold, its time premium starts to decay as the option moves toward expiration.

Throughout the trading day, Mike's team is responsible for assisting clients with questions ranging from the basics, such as the definition of an option, to more advanced topics involving early exercise and assignment, corporate actions, multi-legged strategies, and option expiration.