Sentences with phrase «option has an expiration date»

Common stock can be held indefinitely, while every option has an expiration date.
Each option has an expiration date in June, so they are each three month options as intended.
Options have expiration dates, which means you should purchase put options which don't expire for several months.
But every option has an expiration date.

Not exact matches

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.
I've never sold options with expiration dates almost a year out.
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.
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.
These contracts also have an expiration date, the day after which the option expires and literally no longer exists.
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).
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).
A «call option» has an expiration date and a strike price.
In the option world, the buyer of a call option (not you... as a covered call investor you are a seller of call options) has the right to buy your stock at a certain price (strike price) by a certain date (expiration date).
For example, with a single click you can remove all options that have an earnings release date prior to option expiration.
Much the same way you'd create a bond ladder with various maturities, when writing a portfolio of covered calls you may want to stagger your expiration dates across a few months, with a possible bias towards the near term (since time decay is better for the option writer on the shorter duration options).
By selling a call option, we would be giving the buyer of the option the right, but not the obligation, to purchase our 100 shares at $ 55.00 per share (the «strike» price) anytime before May 19 (the contract «expiration» date).
All you need is a list of stocks that have ex-dividend dates prior to whichever option expiration date you're interested in.
Cash is an option on thousands of companies and each option has no strike price, no expiration date, and no premium cost
A diagonal spread is a pair of options that have the same underlying stock, same option type (call or put), but different strikes and expiration dates.
To remove everything that has an earnings release before the option expiration date, we go into the Advanced Filters:
Long - Term Equity AnticiPation Securities ®, or LEAPS ® are a type of equity options contract that have expiration dates of up to three years.
Most other financial instruments, like futures contracts or options or binary options or spreads have an expiration date.
If your option expires in the money, you may exercise it or it may even be exercised for you and you will then have a futures contract which is approaching a later expiration date.
Because term life insurance has an expiration date on them, they tend to be much cheaper than the other coverage options.
But you might have to hurry — that option may have an expiration date.
Put options cover 100 shares per contract, have a strike price and expiration date, but reverse the buy / sell agreement between the two parties.
By selling a call option, we would be giving the buyer of the option the right, but not the obligation, to purchase our 100 shares at $ 55.00 per share (the «strike» price) anytime before October 20 (the contract «expiration» date).
By selling a call option, we would be giving the buyer of the option the right, but not the obligation, to purchase our 100 shares at $ 65.00 per share (the «strike» price) anytime before February 16 (the contract «expiration» date).
Simply put, Buffett has sold long - dated insurance against the debt of specific companies (credit default obligations or CDSs, expiring between 2009 and 2013) and against declines in the world's major stock market indices (equity index put options, with the first expiration in 2019 and average maturity of 13.5 years).
Let's start with Born To Sell's default covered call screener settings and make three changes: (1) set the Expiration date to January 2015 to give ourselves more time, (2) set the Moneyness filter to 10 % in - the - money or more, and (3) set the Minimum Open Interest filter to 300 or more (default value is 1000 but these longer dated options don't have near the same open interest as shorter - term options).
I expect that this may be more difficult given that at any given time, a stock may have many different options trading with different expiration dates and strike prices.
Each option contract has a specific maturity or expiration date.
To maintain liquidity, contracts trading on an exchange have standardized sizes, expiration dates, and, for options, strike prices.
The put options as examined previously should have shorter expiration date when compared to the call options in order to follow as the wave c, that is an impulsive move and it should travel faster than the actual follow move and in addition to all this, since this is a bullish pattern it should be followed by the price action for the bullish pattern.
Options have set expiration dates, and if a contract is not in a profitable position at the expiration, it will expire worthless, resulting in a 100 percent loss of the amount invested.
Based on this issue, a trader will have the opportunity to determine the expiration date in a way that the option will expire in the money.
Both options must have the same strike price and expiration date.
Next, he buys 5 call options, each controlling 100 shares, that have a strike price of $ 65.00 and an expiration date of September 1, 2016.
So n would be equal to the number of trading days before the Asian option's expiration date.
I wrote most of the post on June 14, so pretty much right before the expiration date, and this might have contributed to an increase (or decrease, hard to say) in options activity for both issues.
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.
Note that MRK has an ex-dividend date the same day as the weekly option expiration.
Buying this particular option would be profitable if the share price of IBM moved above $ 181 before reaching the expiration date.
If you sell an options contract, you have the obligation to buy or sell a security prior to the expiration date.
Both options have the same expiration date of 3 months.
Therefore, a trader would purchase a call option if he expects the stock's trading price to exceed the strike price before the expiration date, as he can execute the option and profit on the difference.
For companies that typically release earnings on the cusp of monthly options expiration - either a few days before expiration or a few days after - it would appear the day that the earnings release date is announced may itself significantly affect monthly option prices.
The option of delivery has been kept open in futures contract so as to ensure that the futures price and cash price of the good congregate at the expiration date.
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