Sentences with phrase «net debit»

"Net debit" refers to a situation where you owe or have spent more money than you have received or earned. It means that there is a negative balance or a negative amount left after subtracting your expenses from your earnings. Full definition
The bank reported fixed income trading revenues fell 13 percent in the quarter, excluding net debit valuation adjustment.
Let's compare net debits for different strikes on the same underlying stock.
Here's how we'd make the trade... We'd place a «Buy - Write» options order with a Net Debit price of as close to $ 34.80 ($ 36.27 — $ 1.47) as we can get — the lower the better.
For example, if you buy 100 shares of AAL at 36.55 and sell 1 Sep 16 expiration, 35 - strike, call option for 1.85, your out of pocket cost (net debit) is 34.70 per share.
Net Debit is your total cash outlay (per share) to enter one of these trades.
I think I paid $ 37.20 for (net debit) at this price.
Your net debit (out of pocket cash) for today would be 34.19 (41.89 - 7.70).
Remember, at the start you paid 1620 but you received 188 so your net debit was $ 1432.
The most you can lose is your net debit per share.
Your net debit is the price you paid for the stock ($ 32) minus the amount you received for the call option ($ 3), or $ 29 / share.
Net Debit is the cost to complete both sides of a buy - write (covered call) transaction.
Because it is your break even point, when comparing 2 options on the same stock a lower net debit is more conservative (and will have a lower return) than a higher net debit.
Our tables have a column for the Net Debit calculation.
However, if MMR was below your net debit (14.46) on expiration day then you would have a loss.
When searching for in the money covered calls you should not just chase the highest yield, but instead do research and only get involved with stocks you wouldn't mind owning at the net debit price of the transaction, because if you do enough covered call trades then that will happen with some of your trades.
It equals the difference bewteen the strike price and the net debit, divided by the net debit.
Net debit is $ 37 (39 - 2) so your account is debited for $ 3700.
However, if LULU was below your net debit (40.85) on expiration day then you would have a loss.
If the stock stays flat (it's $ 39 on expiration day), your account is worth $ 3900 (you have 100 shares of a $ 39 stock) and you had invested $ 3700 at the beginning, so the return is the time premium divided by the net debit: 2 / 37.
It equals the time premium divided by the net debit.
In this case, the net debit of $ 0.55 will inflate to $ 10 if GG closes at $ 35 or higher on expiration — a return of more than 1,700 percent.
This investor will have a profit if JCI closes above 30.10 (net debit) on Friday, April 15, 2016.
If the drug or cure doesn't work or is denied by the FDA then the stock will most likely drop dramatically, and often times below your net debit break - even price (even if you sell in the money calls).
The difference between the Net Debit and the Call Strike is the amount of time premium (per share) you will make if the stock is called away on expiration day
Here's how I made the trade... I placed a «Buy - Write» options order with a Net Debit price of $ 89.30 ($ 90.60 — $ 1.30).
«Net Debit» is the asking price for the stock minus the bid price for the call (i.e. it is your cost to get into the trade if you buy the stock and sell the call).
Bear put spread is used for the net debit, whereas the bear call spread is used for a net credit, which means that an upfront payment is received at setting up a bear call spread.
Here's how we'd make the trade... We'd place a «Buy - Write» options order with a Net Debit price of as close to $ 79.39 ($ 80.94 - $ 1.55) as we can get — the lower the better.
Here's how we'd make the trade... We'd place a «Buy - Write» options order with a Net Debit price of as close to $ 34.80 ($ 36.27 — $ 1.47) as we can get — the lower the better.
Look at the Jan.»16 $ 55.00 covered call for a net debit in the $ 53.39 area.
By selling the Jan.»16 $ 109.00 call and buying the Jan.»17 call at the $ 95.00 level for a net debit of $ 13.30, traders will book a profit as long as...
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