This tag is to be used for any question on Options, A more specific tag [put-options, call-options, options-assignment, option-exercise] should be used when appropriate.

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What are the tax implications of transferring call options from my corporate account to my personal account?

Place of residence: Ontario, Canada (personal and corporate). I have call options in my corporate business trading account. (A corporate business account is a business account for a corporate entity.)...
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1answer
42 views

Can I buy put options on an ADR?

A stock is listed on Tokyo Stock Exchange. I want to buy put options on it - how can I do that? Or is short selling an ADR my only possibility?
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14 views

How can change in open interest of a particular day be less than volume traded on that particular day for an options?

this is the image of nifty option chain. I am new to options trading and I learnt that open interest change can occur only upon a transaction. But here, the change in open interest is less than ...
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2answers
34 views

What happens when a calendar spread is assigned in a non-margin account?

A well-known option investment strategy is the so-called "calendar spread", which involves buying and selling options on the same stock with different expiration dates. If the strike prices are also ...
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1answer
18 views

optimal OTM option

Lets say ABC is at 200. If I expect that ABC will be 180 by December, and I can only purchase 1 put option, what would be the most OPTIMAL put option to purchase? This is a question I've had - im ...
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1answer
305 views

Always profitable combination of options strategies?

Why can't we just combine multiple options strategies to get an always profitable scenario? For example by combining protective call and protective put won't we be able to get an always profitable ...
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2answers
71 views

When a near term outlook on an asset is negative, is it possible to make money using both put and call options?

This question is about Put options. These contracts give the buyer the right to sell some underlying asset at some agreed strike price at or before (American style contract) the expiration date. ...
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4answers
51 views

Value of a call option spread

In this example: An options trader believes that XYZ stock trading at $42 is going to rally soon and enters a bull call spread by buying a JUL 40 call for $300 and writing a JUL 45 call for $...
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3answers
41 views

Selling put and call Loss Scenario Examples

I am building selling portfolio for option trading. I can find buying call and put scenario but no scenario for selling and losing side. For e.g. If buyer exercised put option, what happened on ...
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1answer
67 views

Risks and taxes for Non-Qualified Stock Options?

I work for a US company in their UK office (I'm a UK national). 2 months ago, the company offered me a grant of non-qualified stock options, which expire in 10 years. However the system tells me I ...
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2answers
62 views

Is this True about Put option

I was reading on option trading put option. They have stated that Volume on put option is less then the call option. Is it true? If it is why ?
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3answers
252 views

Why naked call writing is risky compare to Covered call?

From my knowledge-- I know for sure that Covered Call: Requires you to owe underlying share before writing option and Naked call you don't have to but if you lose you are obligated to sell ...
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1answer
42 views

What happen in this selling call option scenario

I am beginner in trading. So scenario is: For e.g. until the expiry date i want the stock value to stay at $50 or less. But what happen if the stock price went high and then go down near expiry date?...
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2answers
83 views

Buying puts without owning underlying

I'm looking to buy puts for short-term option trading. My time horizon is a week to two weeks at most. I only ever trade the options - I never hold to expiration. When I attempt to buy a put, I get an ...
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1answer
56 views

How to get information about historical stock option prices for a defunct company?

It has previously been asked how to get historical stock prices for a defunct company: How to find historical stock price for a de-listed or defunct company? I would like to know how to get ...
3
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1answer
108 views

Fill price above my ask - how is that possible?

I had tried to sell my GDXJ options @ 12.80, I saw there was a fill at 12.95 but none of my options were sold. When I called the broker they said option spreads are given priority. I can understand if ...
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2answers
62 views

What to think of two at the money call options with different strike prices and premiums?

Suppose a stock is trading for $50. Further, suppose there is some call option A, which has a strike price of $40 and a premium of $10. Furthermore, suppose there is another call option B, which has a ...
3
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2answers
178 views

How to get approved for option trading?

I recently tried applying to get approved for trading options in my brokerage account. I have 10k in the account ~$4k in cash and I'm 23. I have more than the average investor's knowledge when it ...
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2answers
96 views

How can I find ISIN numbers for stock options?

I currently use my bank for brokering services, as I don't have enough capital to justify going on my own. The bank told me that they need an ISIN if I want them to purchase stock (call)options for me....
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1answer
56 views

Can written options be exercised against you prior to expiry when they become “in-the-money”?

I'm talking practically. For example: Suppose I write 10 contracts with strike $102 for 50 cents an option, with expiry two weeks from now, with stock price at $100. A week from now stock hits, say, ...
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31 views

Question about option premiums

Is there any conceivable way in which an OTM option's value will decrease or (will not move, for that matter) as the underlying moves in a direction that gets the option closer to the money, aside ...
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0answers
20 views

Non-resident alien tax: on a trading stock options gain

I am a Non-resident Alien and I have an account with a US broker. I have always traded stocks there, without declaring the gain in the US ( paying the Capital Gain in my home country ). Now, in 2015,...
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0answers
22 views

Which option is more expensive?

Consider two European put options, written on the same asset, with the same maturity, but different strike prices: K1< K2 Which option is more expensive? Then Answer the same question, but using ...
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2answers
61 views

Why buy a vertical spread if I could instead buy a naked call?

If I believe a stock will go up, say from a price of $100, and I wish to execute an options strategy that would make me money if the stock were to rise, why would I want to setup a vertical spread ...
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2answers
47 views

Question about option chain

https://beta.finance.yahoo.com/quote/GOOG/options?ltr=1&date=1516320000 OK, can't I just SELL "350 @ $395 and BUY "340" @ $391 and pocket $4 immediately and realize another $10 if and when the ...
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0answers
16 views

Pricing American Options in Continuous Time Framework

As part of my project i need to create a model to price American put options in continuous time framework. Any ideas how to start? Any good read?
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1answer
50 views

How much money are you actually trading with options?

In my Investments class we are trading options. I bought a TSLA call option for 8.80. I know that options come bundled in groups of 100. So did I actually invest $880 or did I only invest 8.80? I sold ...
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1answer
23 views

Where can I buy European-style options?

My broker (Ameritrade) makes several options available in their platform (thinkorswim). It seems like these are mostly American options (can be exercised at any time). There does not seem to be any ...
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4answers
116 views

Comparison between buying a stock and selling a naked put

Suppose one wants to invest in company X, whose stock is selling for, say, $100/share. What are the differences in profit potential between buying 100 shares and repeatedly selling a naked put at ...
3
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2answers
174 views

Will my money be safe in my trading account during a market crash?

I am an options trader. Imagine when I am peacefully trading on my trading account with my broker, the market collapses and causes a recession or depression. Now can I continue to trade during the ...
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2answers
53 views

If Option prices are publically quoted on an options exchange, why do people use Black-Sholes to estimate their price?

I always wondered why the Black-Sholes-Merton model was used to estimate the price of European-style options when their prices are available on quoted exchanges? I think I am missing something big ...
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4answers
125 views

How liquid is options market?

My strategy invloves making profits by the increase in "Implied volatility" through long straddles/strangles. Enemy: Time decay. I am aware that the time decay accelerates. I read, For a 9 month ...
0
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1answer
48 views

How disciplined are companies in sticking to the announced earnings announcement date?

My options strategy depends on the earnings announcement date. Do all companies disclose earning announcement dates well before the date? Or do they announce as a surprise? How often do they ...
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2answers
45 views

Is there strategy to qualify stock options with near expiry date for long term capital gain tax?

I am trading stock options. Typically I hold them for few weeks; sell them and wait for the next opportunity to trade them again. However, now I have been wondering - is it possible somehow to ...
3
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1answer
41 views

Why do some expiration dates have more open interest for options?

Looking at the options market I noticed that some expiration dates have a lot more open interest than others. A good example is April 15th. Almost every company I've looked at has a very large open ...
2
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1answer
32 views

Is there a way to see how much leverage a mutual fund or ETF is using to generate a return

I am taking over some of my IRA and 401K money and I want to move towards a more value based approach with an emphasis on dividends. One thing I have learned on this quest is that most options have ...
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0answers
14 views

Reporting of 1256 Based Options

I live in the United States. In 2015 I have traded several 1256 based options. The details of each trade were not included in my 1099 and not imported into Turbo Tax. I understand that this is to be ...
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2answers
82 views

Is it possible to know the probability that a trade is successful?

I'm trying to model the distribution of different outcomes of day trading every day for a year. I'm starting with $350 dollars. I'm only doing options trading on Apple stock with a 5% stop loss and a ...
4
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1answer
192 views

How can I bet against oil in the long term?

I want to bet against oil over a long term period (5-10 years, let's say). What is the best way for me to go about this, i.e what should I purchase and how?
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1answer
46 views

Capital gains tax on 1256 based options

If an investor writes a 1256 based option $1000 in January and the option expires worthless in February that is a capital gain. Is it true that, since it is 1256 based, that the capital gains are ...
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2answers
45 views

Call option- premium fall with rise in spot price

The premium of the below call keeps falling although the price is increasing and it still has more than a month until expiry. The current spot price is 392. Shouldn't the in the money strike premium ...
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3answers
227 views

Is it better to buy put options or buy an inverse leveraged ETF?

Let's say you think the market is heading down in the next 6 months. Is it better to buy put options of an ETF (e.g., SPY) or buy an inverse ETF (e.g., SH)? or a leveraged inverse ETF (e.g., SPXU) to ...
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0answers
36 views

Why are some calls priced inaccurately?

I'm new to the world of options and my friend noticed this anomaly. The price of a call at 195.00 for TSLA is priced way above similar strike prices (up > 500% today). Is there any reason for this? Or ...
2
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2answers
96 views

Hedging against an acquisition of a stock

Let's say I have done research and have a view that a public company's stock will go down due to worsening fundamentals. So normally then, one can express that view by shorting the stock. However, ...
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0answers
14 views

Bid ask spread on a mutual fund containing derivatives

On mutual funds with bid and ask prices, It is my understanding that these prices should be close to the bid and ask prices of underlying securities according to their weights in the fund, divided by ...
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1answer
204 views

Tropical Trade Stock Trading

Is Tropical Trade a valid stock trading company? I would like to start investing but I want to know the validity of the trading company.
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3answers
92 views

Open Interest vs Volume for Stock Options

Wanted to double check my intuition - What if there is only one trading day and the volume is smaller than the open interest on that one trading day. This is assuming there is no open interest before ...
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1answer
140 views

Anyone know if IG or Plus500 are scams or not?

I have been doing some research into online trading and came across 2 platforms that are pretty good and user friendly. http://www.IG.com and http://www.plus500.com I have read quite a lot of reviews ...
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5answers
266 views

Should a strategy backtested against three years of tick data continue to produce positive results?

Let's say we have a Binary Options 5-minute trading strategy that relies on multiple indicators and exploits price reversals in currency pairs. Now let's say there is a combination of inputs for the ...
3
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3answers
78 views

Options profit calculation and cash settlement

I have a question regardnig call options. For example: 108-strike AAPL options expiring Dec 24th are 83 cents. That means the cost of one contract would be 83 + 5 (commission) = 89 dollars ...