In this case, you'd buy the stock at $ 43 (long call strike price) and sell it at $ 48 (
short call strike price.)
Because MCD moves slowly to the upside you would be able reel in some of your short calls before the risk was too great as Theta will work in your favor even as the market approached
your short call strike.
Not exact matches
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.
When we are fully hedged, as we are at present (and provided that our long - put /
short -
call option combinations have identical
strike - prices and expirations), the source of our returns is the performance of our favored stocks relative to the indices which we use to hedge.
To understand the effect of this modest shortfall in stock selection performance over the past 8 months, recall that when the Fund is hedged against the impact of market fluctuations (and provided that our long - put /
short -
call index option combinations have identical
strike prices and expirations), its returns are roughly equal to:
Conference
calls upon the National Executive to: (a) consider issuing a specific action instruction on interventions and teaching outside the school day; (b) strengthen the Action
Short of
Strike Action guidance to members, reminding them of their rights regarding working time and (c) continue to campaign for inspection bodies in the UK to include the inspection of work / life balance and workload in their frameworks.
It was at this festival in 1968 that the iconoclast Jean - Luc Godard bandied together with fellow brethren to stop the proceedings of pageantry, spoken in solidarity with the
strikes that were
calling for nothing
short of another French Revolution.
Whether this is a covered
call at 125 or a cash - secured put at 125, the risk below the
short strike price of 125 is the same.
I've researched this some more and it looks like the answer is to pick a
strike such that your
short call is unlikely to be assigned early.
Let's say I'm
short a
call of Microsoft at a
strike of 80 set to expire in a quarter.
if margin
call is not really your concern, but your concern is more like the risk of holding 100 shares of GOOGL, you can help manage that by buying some lower
strike Puts (that have smaller absolute delta than your Put), or selling some
calls against your
short put.
Maximum gain = Difference between
strike prices of
calls (i.e.
strike price of
short call less
strike price of long
call)- (Net Premium Outlay + Commissions paid)
This strategy is known as a bull
call spread and consists of buying, or going long a
call option and combining it with a
short strategy of writing the same number of
calls with a higher
strike price.
A synthetic
short futures is created by combining a long put and a
short call with the same expiration date and the same
strike price.
A synthetic long futures position is created by combining a long
call option and a
short put option for the same expiration date and the same
strike price.
That's an example where we'd write
shorter duration
calls and at lower
strikes, since the premiums are so rich.
Straddle — Buying (long) or selling (
short) a
call and a put on a stock or ETF at the same
strike and expiration.
Strangle — Buying (long) or selling (
short) both a
call and a put on the same stock or ETF with different
strike prices and / or expirations.
Since my last update, I Condorized my JUL RUT Bear
call with a Bull Put and my
short strikes are now at 1220 and 1045.
The buyer of an option will acquire the right to be long or
short a futures position at a particular price
called the
strike price, by a specific date which is the expiration date.
This is a genuine high level summary of the market this week with emphasis on my RUT Bear
Call Spread and a few words on the Ford (F) and GLD simulated Covered
Calls I have an April expiration on RUT with the
short contract at a
strike of 1100.
According to Eden Rahim, portfolio manager for the AlphaPro Covered
Call ETFs,
short - dated covered
calls are written with a dynamic
strike price based on the volatility.
You'll take a long
call position with a lower
strike price than the
short call position on the same stock.
As a general rule, your profits are capped at the
strike price of the
short call position.
We begin with the basic equation: long stock is equivalent to owning one
call and
shorting one put — when the expiration date,
strike price, and underlying asset are identical.
Your
short call position with a
strike price of $ 35 made you $ 100.
This time you take a long
call position with a
strike price of $ 43 and a
short call position with a
strike price of $ 48.
If it remained at $ 30, the 2
short calls and 1 long
call with a $ 35
strike price expire worthless.
Strike price of long call — strike price of short call with lower strike — net premium made = Maximum loss /
Strike price of long
call —
strike price of short call with lower strike — net premium made = Maximum loss /
strike price of
short call with lower
strike — net premium made = Maximum loss /
strike — net premium made = Maximum loss / share
$ 700 (made for
shorting 1
call with $ 25
strike price) + $ 100 (made for
shorting 1
call with a $ 35
strike price)- $ 600 (paid for buying 2
calls with a $ 30
strike price) = $ 200 net premium made
$ 600 (made for 2
short calls)- $ 600 (paid for long
call with lower
strike price)- $ 100 (paid for long
call with higher
strike price) = ($ 100), or $ 100 net premium paid
For example, a
call spread can be constructed with a long
call (at
strike K1) that offers upside growth and a
short call at a higher
strike (K2).
Put -
Call Parity theorizes that A and B are equivalent to a 2x leveraged, long - forward contract at
strike 60 while C and D are equivalent to a
short - forward contract at
strike 120.
Short futures contracts are preferred over long put options when analysis points to the significant likelihood of the index staying just above the
strike price plus
call premium.
Options are contracts between buyers and sellers whereby the buyer (long) gets the right to buy (
call) or sell (put) a particular security at the
strike price from the seller (
short).
Buying the lower
strike price
call «covers» the
short position and puts a limit on the amount of money that can be lost on the trade.
In other words, if you own stock and sell one
call option (covered
call writing) then your position is equivalent to being
short one put option with the same
strike and expiration.
Part one is a covered
call position, and we know that a covered
call is equivalent to being
short the put with the same
strike and expiration.
pat - «Similarly many environmental activists believe that man's influence is a form of sin and nature (Gaea) will soon
strike back...» You can phrase the position of a fictitious group any way you want of course, without rebuttal, because they don't really exist, though there are people who fit the description — especially if by «many» you mean more than three — but the more accurate reality is most of the human beings you would lump under the rubric «environmentalist» would more accurately be described as believing that
short - sighted and greedy human attempts at total control and domination and complete disregard for the healthof the environment have gotten us out of balance with what was an interlocking web of balanced and dynamic systems, and would appear to have unbalanced many of those systems as well, including the still poorly understood cycles of climate; or weather, as we laymen
call it.
Demonstrated troubleshooting skills, after hours
call in for network outage, evaluated LAN network HP Procurve 5901 switch, module 5 completely dead
shorted out by lightning
strike nearby, replaced, ran diagnostic for internet speed to full operations