Sentences with phrase «investor selling a call option»

An investor selling a call option is known as the writer.

Not exact matches

Many investors know that a put option gives them the right to sell a stock at a specified price within a set period, while a call option provides the right to purchase shares at a specified price, also within a set period.

A covered call transaction where both parts of the trade are done at the same time: An investor «buys» the stock and simultaneously «writes» (sells) a call option.

Investors who buy stock for the purpose of selling deep in the money calls against it are trying to earn the time premium portion of the option price as income.

Short straddle: An options position in which the investor sells both a call and a put on the same security.

Covered calls are options an investor sells on stocks he already owns.

When an investor decides to buy or sell the underlying investment, this is called exercising the option.

They then chop up the bonds into short - term munis called tender option bonds (TOB) and sell those to other investors.

Investors can both buy and sell, also called «writing», an option.

One popular type of derivative that many investors buy and sell are called options.

If an investor chooses a deferred sales charge option, the mutual fund company that manages and administers the funds deducts what is called a deferred sales charge from the value of units sold if they are sold within a certain number of years (which varies according to the fund type and company).

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

Covered calls are an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset.

Many options investors sell their call contracts at some point before expiration, allowing them to realize a profit if the premiums have increased.

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.

RRSP investors can buy or sell call options, but call options can only be sold (written) if you already own the underlying shares in your RRSP (called a covered call option).

The investor purchases one call with a strike price of $ 50.00 for $ 500.00, writes two calls with a strike price of $ 55.00 that sell for $ 50.00 each, and purchases another call option with a strike price of $ 60.00 for $ 20.00.

Next, the investor writes and sell 5 call options with a strike price of $ 70.00 and an expiration date of September 1, 2016.

Next, both investors who bought the $ 55.00 call options decide to exercise their options, meaning our original investor has to sell them 200 shares at $ 55.00, for a total of $ 11,000.00.

Going back to Crescent Point, investors who sell the $ 14 May 19th call options will immediately get $ 0.12 per share for their trouble.

Puts, calls, strike price, in - the - money, out - of - the - money — buying and selling stock options isn't just new territory for many investors, it's a whole new language.

In search of extra income, investors sometimes skip bonds — and instead sell call options against their stock portfolio.

Covered Call Writing is a conservative options strategy that allows investors to earn extra income from their stock portfolio by writing (i.e. selling) call optiCall Writing is a conservative options strategy that allows investors to earn extra income from their stock portfolio by writing (i.e. selling) call opticall options.

Technically, though, there is a third option to the «keep versus lapse» decision of life insurance: to sell the policy to a third party in a transaction called a «life settlement» to an (institutional) investor who might be willing to pay more than just the policy's cash value (or the $ 0 value that might be available if the coverage just lapses on its own).

Technically, though, there is a third option to the «keep versus lapse» decision of life insurance: to sell the policy to a third party in a transaction called a «life settlement» to an (institutional) investor who might be willing to pay more than just the policy's cash value (or the $ 0 value that might be available if the coverage just lapses on its own).

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