Sentences with phrase «put option expires»

Now, if the stock increased to $ 55, the covered put option expires worthless.

If the put option expires worthless, you keep the $ 25 premium, earning a potential 14.3 % return in 39 days.

He finds that the January $ 27.50 put option (meaning a put option expires in January with a strike price of $ 27.50) is trading at $ 2.95, and the January $ 35 call option is trading at $ 2.

The investor first purchases a put option expiring in June with a strike price of $ 30.00 for an option premium of $ 2.00.

That said, I am no longer interested in this stock and I will do all it takes to let the put option expire worthless.

Not exact matches

By selling just slightly out of the money puts, you not only increase the premium you receive, but you also increase the profit potential if the options ultimately expire worthless.

Therefore, the investor purchases one put option with a strike price of $ 20, which expires in one month.

Since I bought shares in another media company (NXST) earlier in the month, I was hoping that this CMCSA put option would just expire out of the money, as opposed to potentially being assigned and having to use more cash to buy more media stock.

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.

Particularly with doubts over Emre Can's future on Merseyside as his contract will expire this summer, Klopp may well be in the market to bolster his options in that department and Doucoure has seemingly put his hat in the ring to be a candidate.

If the put buyer does not exercise his or her right to sell the stock before the predetermined time, the options contract expires and the opportunity to sell the stock at the strike price will cease to exist.

For example, assume an investor owns one put option on hypothetical stock TAZR with a strike price of $ 25 expiring in one month.

A Black Swan event is, by definition, rare, which means that most of the time the put options will expire worthless but will occasionally pay off in spades.

If the underlying stock price were to instead rise above the put's exercise price, the put will expire worthless — but your loss is limited to the premium paid to acquire the put option contract.

However, the price of a put option isn't only related to the price of the underlying stock — it's affected by several different parameters, including market volatility and the amount of time left before the option expires.

If the underlying moves up and the option expires, a call option will now have a 100 Delta and the corresponding put will have a 0 Delta.

I have 10 options expiring today — seven puts and three calls.

If the option expires in the money, 100 shares of stock are put to the writer for $ 75 per share.

If the option expires while the share price is above the strike price of $ 75, referred to as being out of the money, the option writer keeps the premium and can sell another put option to generate additional income.

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).

The rule applies if it appears, at the time you sell the put option, that there is no substantial likelihood it will expire unexercised.

Stock above the break - even point If ZYX is trading at 48 at expiration, the unexercised put would generally expire worthless, representing a loss of the option premium or $ 350 per contract.

In this example, the investor is hoping that Intel \'s stock price will appreciate, and that the short put option will expire worthless in 180 days, leaving the long put option in place as a hedge for the next 360 days.

Therefore, the investor purchases one put option with a strike price of $ 20, which expires in one month.

All options would expire worthless except the $ 35 written put.

I only have three options expiring — two puts and one covered call.

Optionality An option gives the right to buy («call») or sell («put») shares at a fixed «strike» price, but only before an agreed date when the option expires.

He finds a similar put options, expiring in June with a strike price of $ 40.00 and purchases one for $ 0.25.

So, to hedge 200 shares, we can purchase 2 put options with a strike price of $ 18.00 which expires in 3 months.

Purchased put options may expire worthless and may have imperfect correlation to the value of the Fund's sector ETFs.

A system in which much longer symbols are needed, but they contain all the information required to identify a unique option: DELL 4.000 C 5/16/2010 isn't easy to type, but once you know how to read it, it's easy to see that it's an option on DELL, expiring on May 16th 2010, is a call (rather than a put,) and has a strike price of 4.

Put options can be exercised at any time before the option expires.

Similarly let P c (S0; K, T) be a European call option and P p (S0; K, T) be a European put with strike K expiring in T years on an asset with initial price S0.

Let P di (S0; H, K, T) represent the value of a down - and - in put option with strike K and barrier H expiring T years from now on an asset with initial price S0.

So, if he thinks the market price of an asset will drop below the strike price before the contract expires, he would buy a put option.

Coming into this coming Friday's option expiration, I have two MDY June $ 290 naked puts left to expire.

With a long put option, the maximum loss is when the option expires worthless as the index stayed above the strike price plus call premium.

Options have expiration dates, which means you should purchase put options which don't expire for several Options have expiration dates, which means you should purchase put options which don't expire for several options which don't expire for several months.

Credit Spread is a position consisting of two options (both calls or both puts) that expire on the same day.

I've only had to use it on the rare occasion that options expired in the money, and I got put a stock.

If you sell the RUT 580/590 put spread instead of the 610/620 put spread, there is a higher probability that the options you sell will expire worthless, allowing you to earn the maximum profit that trading this iron condor allows.

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).

My last option trade on AA was three July 37.50 naked puts that expired worthless.

To put it another way, the buyer of a binary option that expires at the money will receive a zero payout and the seller will receive the $ 100.

So how about put options on Exxon stock that expire in 30 or 50 years?