Sentences with phrase «profit at expiration»

Your profit at expiration is the difference between the $ 100 settlement and the combined initial costs of the two binary positions.

The position will profit at expiration if the stock is priced above $ 56 or below $ 44.

If the stock is called at 31 then the profit at expiration is 3.95 % (1.19 / 30.10) in 86 days, or 16.8 % annualized.

Not exact matches

You will make a profit if a binary option finishes just a single price increment below (PUT option) or above (CALL option) its opening price at expiration.

* Finally, if implied volatility perks up from its current slumber and spikes to higher levels, that can inflate the profit potential (at least prior to expiration) of this trade.

For instance, if at the expiration of the put contract the stock reaches your $ 70 price target, you might then choose to sell the stock for a pretax profit of $ 1,700 ($ 2,000 profit on the underlying stock less the $ 300 cost of the option) and the option would expire worthless.

Our highest profit would be attained at 135 based on options on futures expiration.

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).

The trade breaks even at $ 37.75 on expiration, and maxes out at $ 2.25 profit if the stock goes above $ 40.

If the stock rises ends above the strike price at expiration and is called, you sell the stock at a profit, while still keeping the premium.

This is possible because the options contracts are a commodity that can be traded up until the moment of their expiration, given that the market wishes to purchase it, allowing investors to buy the contract and then sell it again at a later point in time without ever exercising the rights that the contract guarantees, but still profiting from the fluctuation in contract value.

Stock above the strike price If ZYX advances to 50 at expiration, the covered call writer, upon assignment, will obtain a net profit of $ 875 per contract (the exercise price of 45 less the price of the stock when the option was sold plus the option premium received of 3 1/4 X 100).

Many options investors sell their call contracts at some point before expiration, allowing them to realize a profit if the premiums have increased.

The maximum profit from an out - of - the - money covered call is realized when the stock price, at expiration, is at or above the strike price.

If the price of the security falls below the strike price before the expiration date, the buyer exercises his option and sells the security at the strike price thus saving himself from the loss of selling at the lower current market price; however, if the price of the security remains the same or increases, he can choose to not exercise the option and earn profit.

You can get creative with your offsetting futures trade if you are in the money by placing a GTC sell limit quite a distance above your strike price in the event the market rally's, let's say at 2210.00 or if you want, when you are in deep in the money with a day or two before expiration you can place a sell stop under GTC, or even a trailing stop in the futures, you know what they say, «cut your losses short and let your profits run!»..

At expiration if the binary trade works, your profit is $ 17.50 but if the AUS / USD rallies and finishes above the strike, your loss is $ 82.50.

If Colgate's share price is above $ 71 at expiration then I'll get to keep the $ 62.95 as profit.

Whether it's by 1 pip or 1,000 pips, it's the same profit payout at contract expiration; there is no middle ground.

So the profit from an option trade is the amount the market has gone beyond the strike price minus the premium at the contract expiration.

And your profit or loss is always just the difference between the price at which you bought or sold and the price at expiration.

At the expiration date of the contract, the position is liquidated into the respective percent profit or loss denominated in TRD.