Sentences with phrase «money call option»

The Index is computed by writing one month, slightly out - of - the - money call options on a S&P 500 Index portfolio and adding the change in value of the call premium to the change in value of the S&P 500 Index plus dividends.

Out - of - the - money call options for agricultural products such as corn and soybeans are signaling fears of prices moving up despite an abundance of supplies.

These near the money call options are reasonably priced because we buy most breakout trade setups within the base — before the stock actually breaks out of its range.

You can think of these stories as long - term out of the money call options.

You might have heard of skew, where out - of - the - money put options are more expensive than out - of - the - money call options.

In the money call options with high delta would be expected to drop the most on ex-date while out of the money call options with lower delta would be least affected.

If the stock drops 10 % in 40 days you've still made a profit... because you sold an in the money call option.

By selling out of the money call options against their positions they get extra dividends from these already high - yielding stocks.

At the same time, the stock holder sells an out - of - the - money call option, which grants the buyer the right to buy those same shares at the call's strike price.

But trying making much $ on a long dated out of the money call option.

When the price paid is excessive, the equity portion of an LBO is really an out - of - the - money call option.

At expiration, it is common for a brokerage to automatically exercise in - the - money call options, which results in your purchasing the corresponding amount of stock.

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.

In an in the money call option bullet trade, the call option owner would need to exercise the option, obtain the security and immediately sell it in the secondary market.

Buying an in the money call option refers to a call option with an exercise price that is lower than the market price.

The two most common include buying an in the money put option or an in the money call option.

To execute this trade an investor buys an in the money call option.

For a downside hedge, I know that I can buy a PUT and keep my long shares, or I could just sell my shares and invest in a deep in the money CALL option.

Note that deep - out - of - the - money call options on ILETFs are more expensive than deep - out - of - the - money call options on LETFs when ρ < 0.

This observation is consistent with the intuition that return shocks are inversely correlated with volatility shocks — resulting in more expensive out - of - the - money put options and less expensive out - of - the - money call options.