Sentences with phrase «own call option»

Former SAC executive Gabe Plotkin's Melvin Capital took a new position in streaming video service Netflix (nflx), buying 950,000 shares and a call option for 1.45 million shares, according to regulatory filings on Monday.

Salman Khan of the Khan Academy explains call options: contracts you purchase if you think a stock will go up in the near future.

There is now far more demand for options to sell Brent than there is for call options, which are the right to buy Brent at a certain price.

A strategy that involves buying call options — contracts betting a stock will rise — around a company's analyst day has returned an average of 21 % since 2004, according to data from Goldman, which looked at more than 7,000 instances.

They also bought $ 25 - million (U.S.) worth of call options on the Market Vectors Junior Gold Miners ETF (GDXJ), leveraging their position beyond the two million shares they already held in the ETF.

On Monday and Tuesday, more call options than put options were traded on Nike, potentially signifying a greater propensity among traders to make bullish bets on the sportswear company.

But now, just about two years later, and with Einhorn's stake in the company 40 % larger (excluding call options), shares of GM are 3.5 % lower from when Einhorn first initiated his most recent stake.

In the final quarter of 2016, Einhorn also added 25 million call options of GM valued at $ 871 million — meaning he bet the stock would rise.

If the stock price moves up dramatically, a trader can use the call option to buy shares at a big discount, while if the price drops far enough, the put option will instead turn a profit.

Since the financial crisis, Carson has developed a number of specialty strategies, including managing rental properties, buying health - care royalty streams and writing covered call options to help diversify his clients» mix of returns.

Carson says that writing call options on a basket of stocks with high - dividend yields can generate a return of between 10 percent and 15 percent.

The speculation also prompted a spike in call options bought, indicating an increase in bullish bets.

Many investors know that a put option gives them the right to sell a stock at a specified price within a set period, while a call option provides the right to purchase shares at a specified price, also within a set period.

As the S&P 500 rose, investors positioned themselves to profit from new highs by demanding more call options, which are instruments that give them right to buy stocks at an agreed price.

Sometimes, the seller will ask the buyer to pay what's called an option fee.

More than 10,000 Bed Bath & Beyond call options with a January 22 strike price were purchased on Thursday for between $ 0.77 and $ 0.95 per contract.

Traders can use call options to capture potential upside in a stock while committing less capital upfront for the trade, as the price of each options contract is often less than the price of the stock.

Since each call option accounts for 100 shares, the nominal cost of the whole transaction is just north of $ 5 million.

But instead of pocketing a huge profit, he reinvested the money into Tesla call options that expire in January 2015 with a strike price of $ 130.

At about 50 cents a pop, the aforementioned VIX call options expiring in 13 days have only been this cheap on a couple of occasions since the start of 2011, and not in three years, according to data compiled by Macro Risk Advisors.

The firm also took a very small stake in Snap and bought call options for the SPDR S&P 500 ETF (SPY).

Since each call option accounts for 100 shares of stock, this trade is worth nearly $ 2 million in premium and sees profits if Microsoft rises above $ 50, or more than 5 percent, by Oct. 30.

For hedge fund traders, my new friend went on, every deal is a sort of call option.

A call option, he explained, is a type of financial contract that allows an investor to make deals that have limited potential for loss but unlimited potential for gain.

For example, selling call options against stock positions you own can provide some downside protection and also produce a nice income stream.

The per share exercise price of these call options is $ 20.15, subject to adjustment to account for any dividends or other distributions declared by the Issuer prior to exercise of the options.

(1) Represents shares underlying American - style call options purchased by the applicable Reporting Person in the over the counter market.

HEX writes call options on most of its portfolio, usually with a one month maturity and at a strike price slightly higher than the prevailing market price.

Icahn Master has sole voting power and sole dispositive power with regard to 4,861,502 Shares (including Shares underlying call options).

One deep - value investment that has treated me well so far is Dream Office REIT, which I've invested in alongside a covered call option strategy for some serious income.

LedgerX lists day - ahead swaps and monthly put and call options for bitcoin (BTC / USD).

(2) This amount represents the cost of an applicable American - style call option to purchase one Share.

Here's a quick review of how they work: An ETF of, say, three stocks writes (sells) call options on the three firms at a fixed «strike» price and for a premium.

(b) High River has sole voting power and sole dispositive power with regard to 2,993,477 Shares (including Shares underlying call options).

Unlike HEX, ZWB writes call options on only about half its portfolio.

We also complement our equity and fixed income investments with the selective use of the covered call option strategy to further enhance returns.

The various classes of equity are modeled as call options that give their owners the right, but not the obligation, to buy the underlying equity value at a predetermined (or exercise) price.

In January, the Bank of Montreal launched an ETF holding the six big banks with call options on each.

Two days ago, we notified you in this post of Dr. Jack's swing trade buy entry into $ EEM and $ EEM call options.

Common equity classes are considered to be a call option with a claim on equity value at an exercise price equal to the aggregate liquidation preferences for the preferred equity classes.

Meanwhile, though the Fund is tightly hedged, our long put, short call option combinations are established so that only one strike is in - the - money when they are initiated.

Call The Options Industry Council (OIC) Helpline at 888 - OPTIONS or visit optionseducation.org External site for more information.

When I hold positions overnight, I usually do so using put and call options.

But even here, risk management for us takes the form of diversification, while the use of call options (rather than margin) means that the effect of any leverage would be limited to the few percent paid for those calls.

We also consider the volatility of each ETF when selecting the appropriate call option.

Sometimes, it makes sense to sell a call option with a strike price that is much higher or «further out of the money» than the current market price or to select a three - month term instead of a one - month.

If you sell me a September 2011 call option with a strike price of $ 19 on your XIU ETF for a premium of 40 cents, it gives me the right, but not the obligation, to buy your XIU ETF from you at $ 19 at any time before the option expires.

That's why we hold over 200 individual investment positions in Strategic Growth, why we diversify across industries, why I left complete put option coverage underneath the Fund's portfolio even in response to a favorable shift in our measures of market action two weeks ago (now neutral), why the dollar value of our shorts never materially exceeds our long holdings, and why even in the most favorable conditions, the Fund can establish leverage only by investing a small percentage of assets in call options (never on margin).

Lower levels of implied volatility mean less income from each call option sold.

On October 16, 2017, cryptocurrency derivatives trading platform LedgerX began listing swaps as well as put and call options for BTC / USD, financial instruments that are available to the institutional market in the US.