Sentences with phrase «selling options»

"Selling options" refers to a financial strategy where an individual or company offers someone else the opportunity to buy or sell a specific asset at a predetermined price within a certain time frame. By selling options, the person or company receives a fee upfront for granting this option, giving them an opportunity to generate income. Full definition
Dynamic Option Strategy targets capital appreciation along with income generation by strategically selling options on the broad market index and large cap stocks.
I will begin with a strategy very well suited for dividend growth investors, and one that can generate big monthly income: selling options for income.
Our fund managers sell these option contracts on a recurring basis, typically for three month periods.
The big mistake that most people make when selling options is that they do it on stocks they would never want to own.
Throughout the first half of 2017, there have been two seemingly contradictory trends playing out in market volatility: low levels of implied volatility and profitability of selling option premium.
Enter a stock symbol and the number of shares you own and we'll show you the income you could earn by selling options against those shares.
And you can have a wash sale from selling options at a loss, too.
If the option holder doesn't sell the option in the secondary market or exercise it prior to its expiration date, the holder loses the entire investment in the option.
When you factor in broker costs, it's generally even cheaper to just sell the option just before expiration.
A person who sells an option or offer to assign without disclosing the nature of that interest to a buyer is engaging in real estate brokerage.
I've never sold options with expiration dates almost a year out.
If option volatility is really high, why wouldn't we want to enjoy the benefits of selling some option premium?
In my original article on selling options against your stock positions, I did not focus on dividend stocks.
Also, most speculative options buyers who make profits on trades do sell their options before they ever expire.
We don't sell options that are only 5 or 15 cents.
We're a full - service real estate brokerage that provides unique savings and home selling options, including cash back programs for buyers and self - hosted showings for sellers.
To directly answer the question as asked, you can buy and sell options without exercise and have the leverage you desire.
If they want out of their long call option position while it still has time premium then they are better off just selling their option instead of exercising it.
Options trading in registered accounts is limited to buying and selling options as well as covered calls.
You could then sell the option back to somebody and make a profit.
If you've never sold options before, you may be uncomfortable with the idea of learning something new.
I tell all the authors I collaborate with to trend softly with email lists, and to avoid any that are «offered» as book selling options.
I thought the process of adding books to a website sidebar, with multiple selling options, shouldn't be so darn painful.
In other words, the trader sells option premium.
And you wouldn't actually buy a share and exercise the option, you would just sell the option back to its issuer for $ 15.
In the case of a corporate bond, it's effectively selling an option on default.
Depending on the bid - ask spread for the option holder, as well as his commission rates, he would probably be better off just selling his option rather than exercising it.
Personally, I just purchased the stock and will consider selling options on any spike close to $ 40.
So how do you actually sell the option out of your account?
Especially selling options appears more lucrative than trading «conventional» instruments.
The latest trend is selling options robots which are advertised all over the internet and promise more than they can keep.
Now just about every manufacturer offers at least one SUV in its lineup, and many sell options in various sizes and styles.
The second, and seemingly contradictory, trend in the market is that strategies selling option premium have done quite well.
# 5 it is possible to design a high winning percentage system selling options but I would advise credit spreads over naked options.
Selling options reduces risk, but can increase returns over the long term.
And while most traders try to profit from a big move in either direction, you'll learn why selling options short - term is the best way to go.
I won't want to get involved with buying / selling options until and if I fully understand them.
This means that holders sell their options in the market, and writers buy their positions back to close.
If in the money, the owner can still sell that option, avoiding the need to buy the stock.
As a private / hard money lender, I have no problem with my borrower selling an option behind my position.
If the price of company A's shares rises to $ 60 and the premium goes up to $ 5, she can sell her options for $ 500.
You can also choose to create and sell options contracts if you wish, too.
When buying an option the maximum loss is the premium paid, but when selling an option the writer receives the premium however assumes the potential of much greater downside risk.
There are many complex strategies of trading options on futures including buying and selling options at different strike prices and more.
A trader who sold options would be required to deliver the cash.
You can generate more income by selling options that are closer to the current market price but that risks having the option exercised and the security called away.
It gives you immediate exchange rates and basic buy / sell options without any hoops to jump through.
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