Tagged Questions

-1
votes
1answer
59 views

List of CFLEX 2.0 brokers

Apparently, one can trade CFLEX 2.0 with CBOE's trading platform: http://www.cboe.com/institutional/pdf/cflexqrg.pdf However, I talked to CBOE, and they said I still have to go through a broker to ...
3
votes
2answers
127 views

Can the purchaser of a stock call option cancel the contract?

Let's assume there's a company, XYZ, trading at $11/share today. I purchase a call option @ $15 for $0.05. Do I need to keep funds in my account to satisfy the contract? I know my counter party ...
5
votes
1answer
847 views

What does it mean to long convexity of options?

In this Bloomberg video, Curnett talks about volatility and the convexity of options. Specifically, he says; "The spread between the VIX sitting there at 20 for a period of time and this realized ...
2
votes
2answers
104 views

What is a straddle?

I have heard the term straddle when referring to options many times. What would it mean if I wanted to enter into a straddle position?
6
votes
2answers
103 views

When I google a ticker like XLE or something, I see a price which updates frequently (about every second or so), where can I find this for options?

Is there an options ticker I can google to get this equivalent? Or any free place where I can see the quotes updating more regularly? I know the bats order book sh
4
votes
4answers
168 views

If you want to trade an equity that reflects changes in VIX, what is a good proxy for it?

If you want to trade an equity that reflects changes in VIX, what is a good proxy for it?
4
votes
2answers
249 views

How is money actually made from the buying or selling of options?

I understand that when you purchase an option it is a contract that allows you buy or sell a security at a specified price on or by a certain time. If you purchase a call option you have the right to ...
2
votes
4answers
392 views

Purchasing options between the bid and ask prices, or even at the bid price or below?

For those more experienced options traders, I'm wondering if you can share what you've found in regard to purchasing near, at or possibly below the bid. For example, yesterday in a slightly rising ...
2
votes
2answers
315 views

Strategies to recover from a bad short-term call options purchase where the underlying dropped instead?

If I bought some short-term call options on an expectation that the underlying stock would go up, but instead the underlying stock declined some, shortly after my options purchase, what choices are ...
5
votes
2answers
278 views

What does this statement regarding put options mean?

I read an article in the NY Times, but I don't understand what this statement means: “The 16 puts on Cisco are offered at 71 cents. We should buy 1,000,” he says to a trader sitting across the ...
9
votes
3answers
196 views

Covered Call Writing - What affects the price of the options?

A little while ago, I bought $800 worth of stocks and sold about $200 worth in call options against the stock. I think it was 200 shares and 2 contracts (so my options weren't naked). That takes the ...
1
vote
2answers
101 views

Where to find really good articles on stocks and general trading information?

Apart from this website, are there any other websites out there that are focused on trading and investing?. I am looking for a website where I can find articles etc on trading and investment - say ...
4
votes
3answers
2k views

How do you calculate the rate of return (ROR) when buying and selling put options?

How do you calculate the rate of return (ROR) when buying and selling put options?
7
votes
5answers
824 views

Is there a good options strategy that has a fairly low risk?

Is there a good options strategy that has a fairly low risk? It doesn't matter if it's complicated, has several legs, and requires margin.
10
votes
2answers
681 views

How can put options be used to buy shares at a lower price?

How to use puts, if you are a net buyer of stocks? I read an article about Warren Buffet buying Burlington Northern stocks and how he used puts to lower the buying price of the shares. Please, ...
4
votes
2answers
94 views

What is the options industry changing about option symbols in February, 2010?

I've heard that the options industry and options exchanges are making changes to options symbols effective February, 2010. What are the specific changes to stock option symbols? Why are the changes ...