However, you can find various
option expiration dates if necessary.
Let's consider the possible scenarios a month from now, in the final minutes of trading on
the option expiration date:
The best ones are those where you get paid a good premium AND you don't mind owning them beyond
the option expiration date if it turns out that way.
Sometimes covered call writers will be subject to early exercise (meaning, the buyer of the option will exercise his right to purchase your stock before
the option expiration date) just so they can capture the dividend.
If there is an earnings release date before
the option expiration date then the options will be more expensive due to the uncertainty of how the stock will behave once earnings are released.
All you need is a list of stocks that have ex-dividend dates prior to whichever
option expiration date you're interested in.
To remove everything that has an earnings release before
the option expiration date, we go into the Advanced Filters:
As long as the ex-dividend date is between your purchase date and
the option expiration date then you will receive the dividend (except in cases of early exercise).
Aside from the strike price,
the option expiration date is the next most important factor in options trading.
Traders often wait until
the option expiration date to decide whether to exercise an option.
Since the stock was trading under $ 48 on January 17,
the options expiration date, I was assigned the 200 shares and I've been holding them ever since.
A bond option is the right, but not obligation, to buy (via a call) or sell (via a put) a specified face value of bonds at an agreed price (the strike price) on or before
the option expiration date (in the case of American - style options) or only on the expiration date (for European - style options).
If you own one IBM January 145 Put, you have the right to sell 100 shares of IBM stock for the price of 145 between now and the January
options expiration date (all options expire on the third Friday of the expiration month).
Not exact matches
For example, CASPERSEN's trades of SPY
options with November 2015
expiration dates caused approximately $ 14.5 million in losses.
The committee may deem that a holder of
options or stock appreciation rights has exercised such
options or rights on the
expiration date using a net share settlement method of exercise if, on that
expiration date, the
options or rights are vested and the exercise price is less than the then fair market value of the Shares.
Similarly, a put stock
option gives its owner the right to sell the stock at the
expiration date for a given price.
I've never sold
options with
expiration dates almost a year out.
A stock trader can hold a position indefinitely, while an
options trader is constrained by the limited duration defined by the
option's
expiration date.
If you're curious about covered call writing, Investopedia defines it as the strategy of giving a buyer the
option to buy your stock shares at a pre-determined price before the
option's
expiration date.
However, when it happens with the binary
options trading,
expiration period or the
expiration date has so many times been proven to be the trickiest part of the binary
option trading.
As readers of PAR's holiday card may have noted, I now view cash the way Buffett's biographer believes Buffett views it: Cash is an
option on thousands of companies and each
option has no strike price, no
expiration date, and no premium cost other than the lost purchasing power due to inflation.
When one pattern is confirmed of being either a simple or complex correction, that is the safe time for a trader to trade with put or call
options that feature the
expiration date that is closely connected to the time frames in which the analysis is being conducted.
These long - term
options provide the holder the right to purchase, in the case of a call, or sell in the case of a put, a specified number of stock shares (or an equity index) at a pre-determined price up to the
expiration date of the
option, which can be three years in the future.
If you find yourself in a pinch and a gas station is your only
option, find foods with minimal ingredients and an
expiration date!
If you find yourself in a pinch and a gas station is your only
option, find foods with minimal ingredients and an
expiration date!
Please do keep in mind; this is just one of a wide variety of
options for an
expiration date label gun.
Call
options are tradable securities that give the buyer of the call
options the right to buy stock at a certain price («strike price») on or before a certain
date («
expiration date»).
Expiration date: The
date that an
option, and the right to exercise it, will cease to exist.
If we look at the sum of open interest by
expiration date, we can see there is more interest in the monthly
options than the weekly
options:
The buyer and seller agree in advance on (1) the stock involved (called the «underlying security» or «underlying»), (2) the duration of the
options («
expiration date»), (3) the exercise price («strike price»), and (4) the price of the
options.
Earnings release
dates are high volatility events and any
option for an underlying stock that has an earnings release between today and
expiration will be priced for earnings volatility.
Prior to the
expiration date, traders have a number of
options to either close out or extend their open positions without holding the trade to
expiration, but some traders will choose to hold the contract and go to settlement.
Rolling involves buying back the existing
options and selling new ones at different strike prices and / or
expiration dates.
Early exercise of an
options contract is the process of buying or selling shares of stock under the terms of that
option contract before its
expiration date.
Typically, the
expiration date falls on the third Friday of each month for monthly
options.
These contracts also have an
expiration date, the day after which the
option expires and literally no longer exists.
Buy to close: For
option sellers, if you are short an
option, you can buy to close the
option at any time prior to the
expiration date.
By selling call
options, we would be giving the buyer of the
option the right, but not the obligation, to purchase our 400 shares at $ 32.50 per share (the «strike» price) anytime before September 29 (the contract «
expiration»
date).
When you buy an
option, you're the one who will decide if you want to «exercise» the
option sometime before the
expiration date.
An
option to buy a commodity, security or futures contract at a specified price anytime between now and the
expiration date of the
option contract.
Expiration Date: The date on which a futures option expires and the last day an option may be exerci
Date: The
date on which a futures option expires and the last day an option may be exerci
date on which a futures
option expires and the last day an
option may be exercised.
In case the
options contract gets exercised on or before the
expiration date, the stock exchange will calculate the profit / loss on your position.
There is another
option, with a strike of 55 (same strike) and an
expiration date that is 2 months farther out that is trading at $ 2.50.
By selling the call
option, I'm giving the buyer of the
option the right, but not the obligation, to purchase my 100 shares at $ 55.00 per share (the «strike» price) anytime before October 20 (the contract «
expiration»
date).
This estimate is a key component to
options pricing as it helps determine the probability that the security will reach a specific strike price on or before the
expiration date of an
option.
The same kind of thing happens when corporate actions occur, such as when a company spins off a subsidiary - the
options with an
expiration date after the spinoff become
options on a basket containing the original company and the spin - off.
If stock X is then $ 50 at the
expiration date I would make no profit at all (the $ 5 I sold the
option for is compensated by the $ 5 loss I made on stock X).
How can the writer of, say, a call
option cancel or reverse the position and its obligation (to deliver shares) before the
option is exercised or the
expiration date reached?
Stock ABC trading @ 100 $, I'll buy the stock ABC @ 100 $ and buy a put
option of ABC @ strike price 90 $ for a premium of 5 $ with an
expiration date of 1 month.
I suppose this might be similar to a stock bankruptcy / delisting situation, in which the stock is no longer tradable on an exchange by the
expiration date of the
option.