Not exact matches
Grocery stores and wholesalers donate food that didn't
sell or is nearing
expiration dates to the store, where they are
sold at extremely low prices.
«With ordinary warrants, the SEC requires investors who have exercised their warrants to delay
selling their stock until
expiration of a holding period — generally two years,» notes Rufus King, a partner
at Boston law firm Testa, Hurwitz & Thibeault.
If the participant
sells the ISO shares prior to the
expiration of these holding periods, the participant recognizes ordinary income
at the time of disposition equal to the excess if any, of the lesser of (1) the aggregate fair market value of the ISO shares
at the date of exercise and (2) the amount received for the ISO shares, over the aggregate exercise price previously paid by the participant.
In other words, while the options would be assigned if the stock dropped below $ 40
at expiration, you wouldn't incur losses unless the stock fell below $ 39.60 — a drop of more than 10 % from the day the puts were
sold.
In other words, while the options would be assigned if the stock dropped below $ 42
at expiration, you wouldn't incur losses unless the stock was below $ 41.20 — a drop of more than 6 % from the day you
sold the puts.
Similarly, a put stock option gives its owner the right to
sell the stock
at the
expiration date for a given price.
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.
These long - term options provide the holder the right to purchase, in the case of a call, or
sell in the case of a put, a specified number of stock shares (or an equity index)
at a pre-determined price up to the
expiration date of the option, which can be three years in the future.
In the envisaged revamping of the Arsenal first team squad during the in - coming summer transfer window for next season's campaign during which
at least 2 world class players are expected to be signed by Arsenal in addition to keeping Ozil and Sanchez, and some underperforming Gunners for 3 consecutive seasons allowed to leave on the
expiration of their contract deals this season or be
sold if their deals are still active to recoup some funds used in signing the 2 world class players in addition to the signing of 3 other top quality new players making them 5 in numbers of: a LB, a DM, an AMD, a versatile world class Winger & a world class Striker whom Arsenal should sign during the summer imho.
For example, if you buy 100 shares of AAL
at 36.55 and
sell 1 Sep 16
expiration, 35 - strike, call option for 1.85, your out of pocket cost (net debit) is 34.70 per share.
A put contract gives its owner the right to
sell 100 shares of an underlying stock
at a predetermined price (the strike) prior to the
expiration date of the contract.
Therefore, the investor has the right to
sell 100 shares of TAZR
at a price of $ 25 until the
expiration date next month, which is usually the third Friday of the month.
Rolling involves buying back the existing options and
selling new ones
at different strike prices and / or
expiration dates.
By
selling call options, we would be giving the buyer of the option the right, but not the obligation, to purchase our 400 shares
at $ 32.50 per share (the «strike» price) anytime before September 29 (the contract «
expiration» date).
If the stock has moved higher by
expiration, you
sell your shares
at $ 67.50.
An option to
sell a commodity, security, or futures contract
at a specified price
at any time between now and the
expiration of the option contract.
By
selling the call option, I'm giving the buyer of the option the right, but not the obligation, to purchase my 100 shares
at $ 55.00 per share (the «strike» price) anytime before October 20 (the contract «
expiration» date).
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).
Let's say there is a stock of ABC currently
at $ 8, and I
sell a (naked) call option on it, with a strike price of $ 10 and
expiration in two months.
That means that (1) you receive $ 15 / share in cash today, and (2) in 2 months time you will either lose your stock
at $ 90 (plus the $ 15 you got today, for a total of $ 105 / share), buy back the call options (and perhaps
sell others), or keep your stock and have the options expire worthless (if the stock is below $ 90 on option
expiration day).
At any time before the
expiration day you can «put» your shares to the person who
sold you the option and receive cash per share equal to the strike price (even if the stock has gone to zero).
For example, if you're concerned that the price of your shares in a certain company is about to drop, you can buy put options that give you the right to
sell your stock
at the strike price, no matter how much the market price drops before
expiration.
Option: A contract that gives the right to a holder to buy (call option) or
sell (put option) a fixed amount of a security
at a specific price anytime before the stated
expiration date (for an American - style option).
Quick review (if you need a longer explaination, see the covered call tutorial): (1) you need 100 shares of stock or ETF, (2) you then
sell 1 call option (because options control 100 shares) against the stock / ETF you own, and then (3)
at expiration you may end up having your stock called away (and receive cash) or you may end up owning your stock and having the call option expire worthless (in which case you can
sell another call for the next cycle).
By
selling a call option, we're giving the buyer of the option the right, but not the obligation, to purchase our 100 shares
at $ 74 per share (the «strike» price) anytime before April 13 (the contract «
expiration» date).
An option is a contract that conveys to its holder the right, but not the obligation, to buy (in the case of a call) or
sell (in the case of a put) shares of the underlying security
at a specified price (the strike price) on or before a given date (
expiration day).
You can
sell the options
at any time before the
expiration date.
An option is simply the right, but not the obligation to buy or
sell a futures contract,
at a pre-determined price, (strike price) on or before a pre-determined
expiration date.
So, if we had bought 100 shares of CVI on Feb 22 and then
sold a March 17
expiration, 25 - strike call option (trading
at 35 cents), we would have received both the 35 cents from the option and the 50 cents from the dividend.
In other words, if I already like the underlying stock — and if I think it's already trading
at a reasonable price — then if I'm «stuck» holding shares
at expiration (April 24) then that's perfectly fine with me: I can simply collect the stock's growing dividend while waiting for a new opportunity to
sell another round of covered calls.
Put Option An option that gives the option buyer the right but not the obligation to
sell (go «short») the underlying futures contract
at the strike price on or before the
expiration date.
By
selling a call option, we would be giving the buyer of the option the right, but not the obligation, to purchase our 100 shares
at $ 55.00 per share (the «strike» price) anytime before May 19 (the contract «
expiration» date).
If the stock price stays above the strike price through the option's
expiration date then the option will be exercised and the investor will be forced to
sell his stock
at the strike price.
An option is a contract that gives an investor the right, but not the obligation, to buy or
sell a stock
at a specific price on or before a specific date, or
expiration date.
If the stock closes
at August
expiration above $ 80, we keep the $ 134 and oftentimes repeat the process by
selling more puts, maybe
at the 80 strike or possibly
at a different strike price.
Straddle — Buying (long) or
selling (short) a call and a put on a stock or ETF
at the same strike and
expiration.
The contract
expiration date would be set somewhere in the future, hence the name «futures contract» and the farmer would then
sell his corn to Post
at the contract price when the contract came due.
By
selling a call option, we would be giving the buyer of the option the right, but not the obligation, to purchase our 100 shares
at $ 55.00 per share (the «strike» price) anytime before October 20 (the contract «
expiration» date).
By
selling a call option, we would be giving the buyer of the option the right, but not the obligation, to purchase our 100 shares
at $ 65.00 per share (the «strike» price) anytime before February 16 (the contract «
expiration» date).
With the stock trading near my purchase price of $ 79.79
at expiration, I'll look for immediate opportunities to
sell another round of covered calls in order to generate additional income and further reduce my cost basis.
With the stock trading below my purchase price of $ 79.79
at expiration, I'll wait until shares climb closer to my purchase price before
selling another round of covered calls.
By
selling a call option, we're giving the buyer of the option the right, but not the obligation, to purchase our 100 shares
at $ 90.00 per share (the «strike» price) anytime before January 18, 2019 (the contract «
expiration» date).
With the stock trading above my purchase price of $ 53.42
at expiration, I'll look to
sell another round of covered calls immediately.
If assignment occurs or the strike price is in - the - money
at expiration, then the writer is obligated to
sell the shares of the underlying stock
at the option contract's strike price.
With AFL trading for $ 59.76
at the time of
expiration, I'll be looking to
sell another round of calls to generate more income and reduce my cost basis further.
The Risk: Writing OTM covered call provides the writer with options income and the writer is only obligated to
sell the underlying security if the stock closes above the strike price
at the time of
expiration.
Purchasing an option it does not obligate you to buy or
sell the underlying stock, but your broker may automatically exercise the option
at expiration under certain conditions.
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.
If you plug these 6 into Born To
Sell's Watchlist feature, you find several combinations of strike prices and
expiration dates that yield
at least 1 % / month or more on an annualized basis (i.e. their Annual Return If Flat is > = 12 %).