Sentences with phrase «own shares of the underlying stock»

When either of these types of equity options is exercised, a physical delivery of shares of its underlying stock from one party to another takes place.

Selling, or writing, a put contract means you are obligated to purchase 100 shares of the underlying stock upon assignment.

When you sell a covered call, also known as writing a call, you already own shares of the underlying stock and you are selling someone the right, but not the obligation, to buy that stock at a set price until the option expires — and the price won't change no matter which way the market goes.1 If you didn't own the stock, it would be known as a naked call — a much riskier proposition.

Selling, or writing, a call contract means you are obligated to deliver 100 shares of the underlying stock upon assignment.

And because you're collecting immediate income, you're lowering your cost basis on the shares you're buying, which means this strategy is actually safer than purchasing shares of the underlying stock outright.

Selling, or writing, a call contract means you are obligated to deliver 100 shares of the underlying stock upon assignment.

A put contract gives its owner the right to sell 100 shares of an underlying stock at a predetermined price (the strike) prior to the expiration date of the contract.

A call contract gives its owner the right to purchase 100 shares of an underlying stock at a predetermined price (the strike) prior to the expiration date of the contract.

For call options, the options holder can demand that the options seller sell shares of the underlying stock at the strike price.

Listed stock options contracts control the right to buy or sell 100 shares of the underlying stock.

For put options, it is the converse, where the options holder may demand that the options seller buy shares of the underlying stock at the strike price.

Selling, or writing, a put contract means you are obligated to purchase 100 shares of the underlying stock upon assignment.

This is precisely what makes this kind of trade safer than simply purchasing shares of the underlying stock the «traditional» way.

The mechanics of this strategy would be for Jack to purchase one out - of - the - money put contract and sell one out - of - the - money call contract, as each option represents 100 shares of the underlying stock.

If you're interested in day trading stock options for a living it's important to be aware the contracts are based on 100 shares of the underlying stock.

So, if you exercise a call, you're buying 100 shares of the underlying stock; if you exercise a put, you are selling the underlying 100 shares at a stated price — known as the «strike price.»

Options contracts typically represent 100 shares of the underlying stock.

It is «uncovered» (or «naked») if you have not shorted an equivalent number of shares of the underlying stock.

For the sake of clarity, all examples in this guide assume that an option is for one share of the underlying stock.

For example, an equity options contract is generally based on 100 shares of the underlying stock.

Each option contract is equal to 100 shares of the underlying stock.

An option contract covers 100 shares of an underlying stock and includes a strike price and an expiration month.

The seller of a call option, also referred to as a writer, is obligated to sell the shares of the underlying stock at the strike price if a buyer decides to exercise the option to buy the stock.

This is precisely what makes a «high - yield trade» safer than simply purchasing shares of the underlying stock the «traditional» way.

If assignment occurs or the strike price is in - the - money at expiration, then the writer is obligated to sell the shares of the underlying stock at the option contract's strike price.

Conversely, when you sell a call option, you must sell shares of the underlying stock at the specified price when the option is exercised.

An uncovered, or naked, call means the writer doesn't have possession of the 100 shares of the underlying stock.

The strike price on the call limits the amount you can pay for shares of the underlying stock.

A put option gives its owner the right to sell shares of the underlying stock at the strike price.

A call option gives its owner the right to buy shares of the underlying stock at the strike price.

And because you're collecting immediate income when you open the trade, you're lowering your cost basis on the shares you're buying, which means this strategy is actually safer than purchasing shares of the underlying stock outright.

And because you collect immediate income, which lowers your cost basis, they're actually safer than purchasing shares of the underlying stock outright.

ETFs don't create or retire shares of underlying stocks or bonds.

Place a trade using your brokers option trading screen to buy one of the selected put options for each 100 shares of the underlying stock you own.

Each option contract is for 100 shares of the underlying stock, so in this case the commission per share would be 40.5 cents.

If, however, you sell options calls or puts, you have the obligation to trade shares of the underlying stock.

It gives them the right to sell shares of the underlying stock at the strike price prior to the expiration date.

While not as common as call options (when the owner is reserving the right to buy shares of an underlying stock), put options can be just as profitable.

If you buy five contracts, you have the right to buy 500 shares of the underlying stock.

But when you buy into a mutual - fund, the mutual - fund «suddenly has more shares» — it takes your money and uses it to buy shares of the underlying stocks (in a ratio equal to its current holdings).

You must then buy the 100 shares of the underlying stock at the strike price.

When the stock declines, they have the right to sell their shares of the underlying stock at a higher specified price - and walk away with a profit.

You should also know that one contract equals 100 shares of the underlying stock.

A dividend reinvestment plan (DRIP) is a plan is offered by a corporation that allows investors to reinvest their cash dividends into additional shares or fractional shares of the underlying stock on the dividend payment date.

An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.

That's what makes this trade safer than simply purchasing shares of the underlying stock the «traditional» way.

Normally, one option is for 100 shares of the underlying stock.

A covered call option strategy is implemented by selling a call option contract while owning an equivalent number of shares of the underlying stock.

Not exact matches

As of March 31, 2018, Amarin had approximately 293.6 million American Depository Shares (ADSs) and ordinary shares outstanding, 32.8 million common share equivalents of Series A Convertible Preferred Shares outstanding and approximately 25.7 million equivalent shares underlying stock options at a weighted - average exercise price of $ 3.35, as well as 12.4 million equivalent shares underlying restricted or deferred stock Shares (ADSs) and ordinary shares outstanding, 32.8 million common share equivalents of Series A Convertible Preferred Shares outstanding and approximately 25.7 million equivalent shares underlying stock options at a weighted - average exercise price of $ 3.35, as well as 12.4 million equivalent shares underlying restricted or deferred stock shares outstanding, 32.8 million common share equivalents of Series A Convertible Preferred Shares outstanding and approximately 25.7 million equivalent shares underlying stock options at a weighted - average exercise price of $ 3.35, as well as 12.4 million equivalent shares underlying restricted or deferred stock Shares outstanding and approximately 25.7 million equivalent shares underlying stock options at a weighted - average exercise price of $ 3.35, as well as 12.4 million equivalent shares underlying restricted or deferred stock shares underlying stock options at a weighted - average exercise price of $ 3.35, as well as 12.4 million equivalent shares underlying restricted or deferred stock shares underlying restricted or deferred stock units.

For example, if company ABC and XYZ are both selling for $ 50 a share, one might be far more expensive than the other depending upon the underlying profits and growth rates of each stock.