Sentences with phrase «shorter expiration date when»

The put options as examined previously should have shorter expiration date when compared to the call options in order to follow as the wave c, that is an impulsive move and it should travel faster than the actual follow move and in addition to all this, since this is a bullish pattern it should be followed by the price action for the bullish pattern.

Not exact matches

Much the same way you'd create a bond ladder with various maturities, when writing a portfolio of covered calls you may want to stagger your expiration dates across a few months, with a possible bias towards the near term (since time decay is better for the option writer on the shorter duration options).

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.

A short rate cancellation is when a policyholder cancels an insurance policy before the expiration date.