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
43 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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2answers
35 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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9answers
17k views

Why are American-style options worth more than European-style options?

Why are American-style options worth more than European-style options? I realize I can exercise American-style options anytime before the expire, but I can only exercise European-style options ...
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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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0answers
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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3answers
504 views

Options for the intelligent but inexperienced

(Related to "Options for Dummies" and "What are some good options strategies...") I've been an investor in stocks for the past 14 years and have the confidence that I know what I'm doing. (Not that I ...
5
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2answers
1k views

Can the Delta be used to calculate the option premium given a certain target?

I’m struggling for a while now with a question about options, namely 'which is the best option to buy?'. I have various books on options, but I’m not an mathematician and don’t have (yet) any ...
2
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3answers
306 views

Can someone explain the Option Chain of AMD for me?

http://www.google.com/finance/option_chain?q=NYSE:AMD Specifically, the $10 strike. What does the $1.99 put mean?
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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
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 ...
8
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2answers
3k views

How are proceeds from writing covered calls taxed?

When I sell call options based on an underlying security that I own (covered call writing), how are the proceeds treated fro tax purposes? As ordinary income? As a short-term capital gain? Is ...
0
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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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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 $...
2
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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. ...
7
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1answer
267 views

What is an “Options Account”?

I am filling out the form to apply for a TDAmeritrade Minor Roth IRA. I understand what's going on so far, but on the actual application I see this form (I have checked off some boxes already): ...
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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 ...
0
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3answers
42 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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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
8k views

Difference between European and American options

Appreciate some help with a problem i am facing OK, so first I found a put and call option with same strike price and maturity for both American-style and European-style options. I selected the ones ...
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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 ...
-1
votes
1answer
57 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
votes
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 ...
3
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2answers
179 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
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 ...
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2answers
19k views

How to calculate the standard deviation of stock returns?

I'm trying to learn the the Black–Scholes option pricing formula and one of the elements of that formula (according to http://bradley.bradley.edu/~arr/bsm/pg04.html) is the "standard deviation of ...
3
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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....
2
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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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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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0answers
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 ...
0
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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 ...
0
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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 ...
3
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4answers
167 views

What are your experiences with 'self directed' 401ks?

Some background: have no plans to leave current company anytime soon, so (short of borrowing against my 401k balance to invest outside the 401k) I can't get the funds out want to max out my 401k ...
3
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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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5answers
761 views

Why does an option lose time value faster as it approaches expiry

What is the reason (without getting too mathematical) that an option loses its time value in a non linear fashion (a.k.a. the time value is lost gradually at first and becomes very rapid in the days ...
8
votes
3answers
50k views

What typically happens to unvested stock during an acquisition?

I work for a publicly traded company that was acquired by another publicly traded company. I also own shares of "restricted stock units" for my company. All of my shares are scheduled to vest far ...
7
votes
5answers
3k views

Why would someone buy a way out-of-the-money call option that's expiring soon?

I swing trade equity options every once in a while for fun. This morning I witnessed something I do not understand at all. In the attached photo, why would someone purchase 6 contracts for .05 at $76....
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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?
0
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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 ...
0
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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 ...
0
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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 ...
2
votes
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 ...
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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
votes
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 ...
0
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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 ...
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 ...
0
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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 ...