Sentences with phrase «strike price of the purchased»

With a put strategy, though, you protect that loss by reserving the right to sell at the higher strike price of the purchased option.

Not exact matches

Years later, in 2010, Amazon launched a full - throttle push to market baby products to moms at the precise moment it was negotiating to purchase the parent of Diapers.com, an act that could only drive down an acquisition price by striking terror in the hearts of other buyers.
One trade the SEC is looking at took place at 12:06 p.m. on that day, when there was a purchase of options with the rights to buy 200,000 shares of BlackBerry stock at a strike price of $ 10 a share, the person said.
a. I can do nothing and I'll be required to purchase 100 shares of said security at the strike price.
shares by which the share reserve may increase automatically each year, (3) the class and maximum number of shares that may be issued on the exercise of incentive stock options, (4) the class and maximum number of shares subject to stock awards that can be granted in a calendar year (as established under the 2017 Plan under Section 162 (m) of the Code), and (5) the class and number of shares and exercise price, strike price, or purchase price, if applicable, of all outstanding stock awards.
The plan administrator determines the purchase price or strike price for a stock appreciation right, which generally can not be less than 100 % of the fair market value of our Class A common stock on the date of grant.
National animal nonprofits and lobbying groups — which often are at odds with one another on issues and legislation — struck a similar chord in saying the purchase of auction dogs at high prices was something other than a form of rescue.
Let's say you buy a call option, which gives you the right to purchase Apple at a strike price of $ 500 per share by the end of the month.
Therefore, the investor purchases one put option with a strike price of $ 20, which expires in one month.
As readers of PAR's holiday card may have noted, I now view cash the way Buffett's biographer believes Buffett views it: Cash is an option on thousands of companies and each option has no strike price, no expiration date, and no premium cost other than the lost purchasing power due to inflation.
Jane's stock option plan allows her to purchase up to 1000 shares of BioPharmGene over the next 5 years — directly from the company — at a «strike price» of $ 2.00 a share (today's market price).
Dan Arking, an associate professor of medicine at the McKusick - Nathans Institute of Genetic Medicine at Johns Hopkins, says he's usually able to get much lower prices — about $ 40 to $ 50 a sample — by being part of consortiums of researchers that get a big enough purchase order from a single genotyping center to strike deals.
«As we move to complete the acquisition with Amazon, we are shifting to the web - based purchasing model they've successfully used with Kindle, which we expect will allow us to strike the best balance between prices, selection and customer experience,» says ComiXology vice president of communications and marketing Chip Mosher.
A call contract gives its owner the right to purchase 100 shares of an underlying stock at a predetermined price (the strike) prior to the expiration date of the contract.
Strike price (exercise price): The predetermined price at which the owner of an option can purchase (call) or sell (put) the underlying stock.
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 you have purchased two XYZ put options with a lot size 500, a strike price of Rs 100, and expiry month of August, you will have to buy two XYZ call options contracts with an expiry month of August.
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).
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).
For example, assume a stock trades at $ 10, a call is purchased at a strike price of $ 15 and a call is written at $ 20 for a premium of $ 0.04 per contract.
A bull call spread is an option strategy that involves the purchase of a call option, and the simultaneous sale of another option with the same expiration date but a higher strike price.
Horizontal Spread The purchase of either a call or put option and the simultaneous sale of the same type of option with typically the same strike price but with a different expiration month.
Exercise Price (Strike Price) The price specified in the option contract at which the buyer of a call can purchase the commodity during the life of the option, and the price specified in the option contract at which the buyer of a put can sell the commodity during the life of the opPrice (Strike Price) The price specified in the option contract at which the buyer of a call can purchase the commodity during the life of the option, and the price specified in the option contract at which the buyer of a put can sell the commodity during the life of the opPrice) The price specified in the option contract at which the buyer of a call can purchase the commodity during the life of the option, and the price specified in the option contract at which the buyer of a put can sell the commodity during the life of the opprice specified in the option contract at which the buyer of a call can purchase the commodity during the life of the option, and the price specified in the option contract at which the buyer of a put can sell the commodity during the life of the opprice specified in the option contract at which the buyer of a put can sell the commodity during the life of the option.
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).
To purchase a call option with a strike price of $ 35 means placing a bet that the underlying stock price will increase to at least $ 35 per share before a certain date.
Whether an in the money strike price is higher or lower than the current stock value depends on the type of option contract purchased.
For example, if XYZ stock is trading at $ 80 and an investor has interest in purchasing 100 shares of the stock at $ 75, the investor could write a put option with a strike price of $ 75.
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).
On the other hand, assume an investor purchases a put option with a strike price of $ 20 for $ 5, when the underlying stock was trading at $ 16.
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).
When you purchase currency options, also known as Forex options, you'll be granted the right to buy or sell the currency that is the primary security for a particular period of time at a predetermined price or strike.
By purchasing a block of 100 put contracts at a $ 90 strike price, you're capping your losses at 10 % per share for the entire duration of the contract (minus the cost of the contracts) because you can sell your existing shares for $ 90, even if the stock is trading at $ 50.
A purchase of a LEAPS ® put gives the buyer the right to sell the underlying stock at the strike price up to the option's expiration.
The specific price at which an underlying stock can be purchased or sold, by virtue of an option, is called the strike price.
Therefore, the investor purchases one put option with a strike price of $ 20, which expires in one month.
The investor purchases one call with a strike price of $ 50.00 for $ 500.00, writes two calls with a strike price of $ 55.00 that sell for $ 50.00 each, and purchases another call option with a strike price of $ 60.00 for $ 20.00.
The investor first purchases a put option expiring in June with a strike price of $ 30.00 for an option premium of $ 2.00.
The maturity or expiration date of a stock warrant is the last date that it can be exercised to purchase the underlying stock at the strike price.
He purchases a June 2016 call option with a strike price of $ 50.00 for a premium of $ 0.25.
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.
Thus if a stock is trading at $ 50, a call on it may be written with a strike price of say $ 52.50, with a put purchased with a strike price of $ 47.50.
Interest rates are also the price consumers pay for the privilege of borrowing money — with certain spending limits — and make purchases whenever the mood strikes them.
If Nike's share price remains below the $ 57.50 strike price then I'll have to purchase 100 more shares of Nike at an effective purchase price of $ 55.91.
An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.
Call Options and Example Call options provide the holder the right (but not the obligation) to purchase an underlying asset at a specified price (the strike price), for a certain period of time.
The seller of the land offers to sell an option contract to you to purchase the land for $ 100,000 (strike price) one year from now.
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 $ 72.50 per share (the «strike» price) anytime before September 21, 2018 (the contract «expiration» date).
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 $ 82.50 per share (the «strike» price) anytime before June 15 (the contract «expiration» date).
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