Sentences with phrase «lower strike price»

Buying the lower strike price call «covers» the short position and puts a limit on the amount of money that can be lost on the trade.
Taking the second point first, a put credit spread — also commonly known as a «bull put spread» - simply involves selling (or «writing») a put option with a given strike price and simultaneously buying another put option at a lower strike price.
You may buy a put with an even lower strike price, but that provides less insurance.
You have limited profit, both above the higher strike price and below the lower 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
You'll also buy a put with a lower strike price than the current market price.
The lower the strike price, the better for the buyer: they have the right to buy stock for a lower amount of money.
You'll take a long call position with a lower strike price than the short call position on the same stock.
A put option with a lower strike price will cost less money.
If it increases a lot, you'll have the option to buy at your lower strike price.
You'll also buy an out - of - the - money put with a lower strike price than the out - of - the - money put you sell.
You'll then be obligated to sell at the lower strike price.
In those cases the more conservative approach is to choose the one with the lower strike price.
Sell out your long $ SPY puts and substitute some with a lower strike price.
In his case, he could buy call options at a lower strike price to offset his put in the event he is required to make good on the put.
For fewer risk trades with call option a trader should choose lower strike price.
Stock options are a different matter, particularly when managements simply lower their strike prices if the stock price declines.
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.
I have a significant amount of non-qualified stock options, at very low strike price, fully vested and can be exercised at any time.

Not exact matches

Nigeria's nationwide oil - worker strike ended over the weekend, and oil prices fell as low as $ 67.55 per barrel on Monday.
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.
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.
That's partly because under an arrangement struck years ago, it sells that uranium at low prices to a subsidiary in Switzerland, where profits are taxed at lower rates.
Nickel prices rose sharply in the past three months; low stocks and a 13 - week strike at a Canadian nickel producer provided additional support to prices.
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.
This means, rather than having to sell our HII shares if they closed above the strike price, with put options, we would have to buy HII shares if they closed below the strike price — which would be a good thing since we could add HII back to our portfolio at a much lower price.
Up to 4,000 dairy farmers recently held a three - day strike, withholding milk from dairies, to protest at low farmgate prices.
Tetra Pak says it's vital for its customers to strike a balance between ideal package functionality and carton cost, with liquid milk one segment where consumers tend to favor a lower product price.
Now that the financial crippled club has not managed to get the asking price they wanted for David Villa, with both Barcelona and Real Madrid looking elsewhere for quality striking options, they are forced to consider lowering their valuation on Silva in order to make ends meet.
Yet, the Blue Jays ended up using Price as a low - leverage reliever because they were being weird, and then his ERA was 5.40 in two ALCS starts, despite allowing fewer than one baserunner per inning, striking out 16 and walking just one.
Officials at the Etihad Stadium are reluctant to meet the hefty price - tag as they have already spent close to that amount on Sterling, but are optimistic of striking an agreement at a lower fee understood to be in the region of # 45million.
First of all, despite the low price, it has a striking 11.4» blade and gray hardwood handle!
Dan Arking, an associate professor of medicine at the McKusick - Nathans Institute of Genetic Medicine at Johns Hopkins, says he's usually able to get much lower prices — about $ 40 to $ 50 a sample — by being part of consortiums of researchers that get a big enough purchase order from a single genotyping center to strike deals.
, brightly colored packaging, unconventional and rare ingredients like pearl, snail mucus, and gold — let's not overlook the accessibility of single - serve products and lower price points — it's no wonder Korean beauty has struck a chord with the masses.
That's why the users of this site have got a perfect place for striking up acquaintances at a low price.
It boasts a surprisingly low starting price of $ 19,960 and drives more like a car than an SUV with ample power and a striking design.
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.
2018 Nissan LEAF offers a longer range at a lower price — with stronger performance, striking new design and cutting - edge technologies
It also can be a pre-emptive strike against the Chinese entrants expected to come in the next few years at low prices
Striking an ideal balance in terms of size and power, the affordably priced Pioneer 700 has a 675cc liquid - cooled, single - cylinder, fuel - injected power plant and a low - maintenance, beltless automatic transmission.
The 240Z's sleek styling, modern engineering, relatively low price, and impressive performance struck a major chord with the public.
With a very roomy interior and smooth ride combined with the striking new cabin appearance, the Taurus now offers a true luxury - car interior at a lower price.
And it's the price cut that seems to have done the trick for with the lowered price, it has struck that consumer sweet spot bang on.
Also, one striking aspect of the Arnova 7 and Arnova 84 tablets is their throwaway prices, which means tablet computing can be within reach of an even lower strata of budgets.
Kindle books are unique in that thanks to their lower, more affordable prices, most readers are much more willing to take a chance on a new author if a particular book strikes their fancy.
Even though it's widely understood that the sponsorships help keep the Kindle prices low, the lack of choice struck a nerve with potential consumers:
A call option with a strike price lower than the stock price has intrinsic value and is considered in the money (ITM).
You must then sell your shares for the strike price, which is lower than the market 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).
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