Sentences with phrase «higher strike price»

All put options the fund writes will be covered, which means that the fund will earmark or segregate cash, U.S. government securities or other liquid securities with a value at least equal to the exercise price of the put option, or will otherwise «cover» its position as required by the Investment Company Act of 1940, as amended (the 1940 Act)(e.g., the fund will hold a put option on the same underlying security with the same or higher strike price).
All put options a fund writes will be covered, which means that a fund will earmark or segregate cash, U.S. government securities or other liquid securities with a value at least equal to the exercise price of the put option, or will otherwise «cover» its position as required by the Investment Company Act of 1940, as amended (the 1940 Act)(e.g., the fund will hold a put option on the same underlying security with the same or higher strike price).
You have limited profit, both above the higher strike price and below the lower strike price.
The idea is to have the contract with a higher strike price.
$ 600 (made for 2 short calls)- $ 600 (paid for long call with lower strike price)- $ 100 (paid for long call with higher strike price) = ($ 100), or $ 100 net premium paid
If it does, the buyer may execute the contract, obligating you to buy the shares at the higher strike price.
With a put strategy, though, you protect that loss by reserving the right to sell at the higher strike price of the purchased option.
Buy (take the long position) 1 out - of - the - money call with a higher strike price than the current market price
And a call option - a buy option, with a higher strike price would be bought for more, so again is worth more and is more expensive?
It made sense to me that a put option - a sell option, with a higher strike price, would be worth more, hence is more expensive.
* I will occasionally roll out a call on a stock if I can get additional premium and roll up to a higher strike price.
The exact construction of a bear call spread involves buying an out - of - the - money call option and selling a higher strike price in - the - money call option of the same asset with same expiration date simultaneously.
You can then sell it for the higher strike price.
You'll buy an out - of - the money call with a higher strike price than the out - of - the - money call you sell.
You'll then be obligated to buy at the higher strike price.
This strategy is known as a bull call spread and consists of buying, or going long a call option and combining it with a short strategy of writing the same number of calls with a higher strike price.
A bull call spread is an option strategy that involves the purchase of a call option, and the simultaneous sale of another option with the same expiration date but a higher strike price.
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).
I used to think that, the higher the strike price, the cheaper the call option.
That means traders who bought the options per Quigg's recommendation were already set to make a profit: If they exercise their option to sell the shares at the higher strike price and then buy at a lower price, they profit with the difference.
The position is characteristically entered by purchasing a high strike price option and selling a low strike price option.
The position is characterized by a low strike price for the long position and a high strike price for the short position.
Options with higher strike prices are more expensive, but also provide more price protection.

Not exact matches

You must strike a delicate balance, setting a price that is high enough to allow you to achieve a reasonable profit margin and yet low enough to keep your merchandise affordable and competitive.
The above chart is pretty striking in that it shows just how much CEO pay has outstripped even the stock market, as higher stock prices are one way in which ever - higher executive pay is justified.
«At this point, and in the context of oil prices that are within striking distance of what we envision to be cyclical highs over the next 6 to 12 months, we think the Exxon short has essentially run its course,» Raymond James analyst Pavel Molchanov wrote.
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.
That is, if the market price of the stock is higher than the strike price, then the ETF will be obliged to sell the stock for the agreed strike price and then buy it back at the higher market price.
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.
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.
If the market value of my company stock is higher than the strike price on any date past the vesting date, I have the option to buy shares of the company stock at the strike price.
It includes access to multiple asset classes and customizable investment amounts, innumerable strike prices, and expiry dates as a large risk and high reward investment.
National animal nonprofits and lobbying groups — which often are at odds with one another on issues and legislation — struck a similar chord in saying the purchase of auction dogs at high prices was something other than a form of rescue.
Arguing that OPEC «has not failed at all» in its attempt to drive oil prices up, Oreshkin said that the price of oil is now much higher than it was this time last year, before the cartel and 11 non-OPEC producers led by Russia struck the initial output cut deal.
In the case of the binary trading, except high or low options, the strike prices are set by the broker and even if you have a fair idea on how an underlying asset will behave, you can not place an order to be executed at certain price points.
While there are some obscure investment cases to be made for ethereum classic, it strikes me as highly likely the price has been driven significantly higher by uninformed investors simply not understanding the difference between the two - similar to how adding".com» to a company's name in 1999 sent stock prices up on average 74 %.
The deal, which creates one of the world's largest private beef cattle operations, was struck on Friday as cattle prices touched new highs.
Like so many other technologies, competition and improvements in manufacturing efficiency have dropped the price point of X-ray inspectors to within striking distance of high - end metal detectors.
I got a run down of lunch prices, including guests prices, but what really struck me was that lunch has only increased THIRTY - FIVE cents since I was in high school in the 90s (crazy steady prices).
The other is a memory - foam model that makes me feel cushioned in just the right position, not too little, not too much — except for a $ 2,400 price tag, which strikes me as a bit high.
I should mention that prices in Red Deer also struck me as somewhat on the high side; with that said, I'm beginning to lose patience with my local VVs too.
These models appear to strike the right balance among the many tradeoffs — price, access, and quality — that affect the success of a country's higher education system.
Presenters: Sean Slade, director of Whole Child Programs, ASCD; Iha Farquhar, community school coordinator, Byrne Creek Secondary, Burnaby, British Columbia, Canada; Clare Struck, guidance counselor, Malcolm Price Laboratory School, Cedar Falls, Iowa; and Barbara Yeatman, curriculum facilitator, Quest Early College High School, Houston, Tex..
Yes, it still had high comfort, a stylish interior, strong reliability and all that other good Toyota stuff, but low power, hefty weight and a high price were three strikes that took it out of serious contention as a sport coupe / hatchback.
The Maxima tries to let buyers get their cake and eat it too reproducing the fun driving experience offered by European sports sedans without reproducing their higher prices and smaller cabins.Strengths of this model include sporty driving experience Striking styling powerful engine upscale luxury features and efficient CVT transmission
The Base coupes strike us as the best 370Z value; Roadsters struggle to justify their relatively high price tags.
Inside, it offers high levels of comfort and an absolutely striking design with technology that rivals that of high - end models way outside the Stingers expected price range.
Jha also suggested the price, which struck analysts and consumers as high, was influenced by Apple's market - leading iPad.
In particular, I'm very struck by the number of trad authors in the UK who are now in almost open opposition to the publishers who are still mostly slapping high prices on an ebook at launch.
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