On April 10 you sell a put option giving the holder the right to sell to you 100 shares of XYZ at a price substantially higher
than the current market price of the stock.
This forced the professionals that managed these funds to sell off stocks that they knew were worth substantially more
than the current market price in order to come up with the cash for those who wanted out of the fund.
One more thing to watch out for is the thought that by using market orders on stocks with a depleted average daily volume, in such conditions in the market where the ask price is a lot higher
than the current market price which may result in a large spread.
GreatPoint told CNET in August that it can produce its natural gas product «bluegas» at about $ 4 per million BTUs (British thermal units), lower
than the current market price of nearly $ 7 per million BTUs.
The premium design is well - realized and certainly like something you'd expect above the $ 229 price tag, which not only is lower than most competitor's launch prices, but also
lower than their current market prices.
The strike price is usually
higher than the current market price of the asset when it is first traded but is usually valid for an extended period of time; and some warrants such as MINIs or perpetual warrants have no expiry dates.
Sometimes, it makes sense to sell a call option with a strike price that is much higher or «further out of the money»
than the current market price or to select a three - month term instead of a one - month.
With a stock price that is down YTD, another firm could step in and acquire MFRM at a value that is much higher
than the current market price.
A limit order to buy or sell a security for a specified price that is higher
than the current market price.
Thinly traded stocks, those with low average daily volumes, may execute at prices much higher or lower
than the current market price.
Another strategy is to put a limit price that is higher
than the current market price and hope that the market goes up and you can sell at a higher price.
On the other hand, I might place a sell order with a limit price lower
than the current market price — say $ 26.50.
An investor with a long position can set a limit order at a price higher
than the current market price to gain profit while investors with short position may set this type of order below the current or present price as the initial target to manage risks along the way.
Another strategy is to put a limit price that is lower
than the current market price and hope that the market drops and you can buy at a lower price.
On the other hand, I might place a purchase order with a limit higher
than the current market price — say $ 23.30.
Buy (take the long position) 1 out - of - the - money call with a higher strike price than the current market price
And I've experienced this personally — to my chagrin, I bought back tens of millions of shares at an average (peak) price that turned out to be about 100 % higher
than the current market price — aah, just following orders, m» lud — and to add insult to injury for the long suffering shareholders, the company THEN discontinued its share buyback scheme and never bought a single share during the long slow slide in the share price since.
A quick note regarding their fills, while purchasing my MSFT, I did notice when the order went through, that it was $ 1 higher
than current market price, which I thought was interesting but it didn't bother me.
The acquisition price, which was agreed on by both parties, is over 40 % higher
than the current market price of the shares which are listed on OTC markets.