2
votes
1answer
140 views

Does the uptick rule apply to all stocks/ETFs and other securities, or only specific ones?

Does the uptick rule on U.S. securities apply universally across all stocks, all bonds, all futures and all options? Or is it limited to certain category of securities/instruments? Is there a ...
1
vote
2answers
75 views

Bid-Ask at market open, which comes first? [duplicate]

I am trying to get a grasp on how the bid-ask match maker works, in particular for options as there is less volume and fewer market orders. Lets say I own an option, and place a limit sell order for ...
2
votes
1answer
81 views

What kinds of financial assets have a fixed payment and finite time?

Which kinds of assets have the following properties? Can be bought or sold in some market Pay some pre-specified amount if a pre-specified (but in the present uncertain) event occurs Has fixed ...
3
votes
1answer
99 views

How are stock options priced?

I was reading the wikipedia article about the Black-Scholes model, and it says this: "The key financial insight behind the equation is that one can perfectly hedge the option by buying and selling ...
2
votes
1answer
140 views

How does selling rights issues work in practice?

I read the article Understanding Rights Issues, but I don't understand how the selling of those rights issues works in practice. Do you simply get call options you can sell on an options exchange? Or ...
1
vote
1answer
106 views

Knockout certificate (Long) fell more than 6% even though the underlaying security rose 1.2%

I recently bought a knockout certificate for facebook. So far it has been doing great returning more then 200%. But recently it has been doing something really strange. On Friday Facebook rose 1.2% ...
1
vote
2answers
96 views

Can I convert spread option into regular call or put?

I have bought spread call on stock X. After that point, the stock went up and came back. My short position is the same price as it was when I bought it 1 month back. At this point If I just clear out ...
1
vote
1answer
417 views

Can you explain this options calls & puts quote table to me?

I was doing some research on options and I found the attached screen. I have no idea what it means. Can someone please explain the columns of the table and how to use such a table when looking up ...
3
votes
3answers
236 views

What is the best way to make a bet that a certain stock will go up in the medium term?

If I want to make a $1000 bet that, say, a share of AAPL will be $1000 in a year's time, what's the best way to do that? AAPL is over $600 today, so with my $1000 I can only afford to buy one share. ...
3
votes
3answers
169 views

What option-related strategies are better suited to increasing return potential?

At this time I buy and hold stocks. In the few coming months I am considering a change in my investment strategy. If I reduce my diversification that will increase my risk. My financial coach ...
4
votes
4answers
204 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?
2
votes
1answer
324 views

Can heavy demand for options drive up or down a stock price?

I understand the market maker is the one quite frequently on the other side of my buy or sell option order (to make sure their is liquidity in the market, and offering the bid / ask spread as ...
4
votes
2answers
98 views

How it actually works? Selling a call on a stock I hold, but has done poor, might the market thinks may rise

I currently own a little over 500 shares of a stock which represent a hefty on-paper loss for me. I don't want to liquidate the position. I think that long term that stock may come back up as in the ...
8
votes
3answers
3k views

If a startup can always issue new shares, what value is there to stocks/options?

Since in most startups the board can issue more shares at will, what does it mean for an employee to own X% of the shares? When signing up, can an employee protect himself from the company printing ...
2
votes
2answers
626 views

Do stock option prices predicate the underlying stock's movement?

I am trying to understand if my thinking is correct or not. I am looking at a stock that is @ $10.00. When I look at the options on the stock $11, $12... calls are all down today and $11, $12... ...
4
votes
2answers
91 views

Buying non-qualified employee stock options that are going to expire?

I have NQ stock options from my employer that have to be exercised in the next few months before they expire. I would like to hang on to them as I have faith in the stock itself. What are my options? ...
4
votes
2answers
84 views

How can I find stocks with highly priced option premiums?

I'm trying to learn some basic arbitrage and I'm reading about tons of different strategies, but it looks as though option premiums are often less than $0.10.
11
votes
5answers
7k views

Please explain the relationship between dividend amount, stock price, and option value?

I consider myself a reasonably knowledgeable investor, but today was blown away by the fact that I didn't know that a stock's price is decreased by the amount of its dividend. To use a concrete ...
4
votes
2answers
195 views

Do investors go long option contracts when they cannot cover the exercise of the options?

Consider I want to buy some american-style call options for a particular stock, and suppose this underlying stock 'XYZ' is valued at $100 a share. Suppose I go long (buy) 10 option contracts for XYZ ...
11
votes
2answers
2k views

What are the tax implications of exercising options early?

Say you have the following situation: You have pre-IPO stock options Half of the options have vested, the other half will vest over the next 2 years Your strike price is S The fair market value of ...
10
votes
4answers
271 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 ...
29
votes
10answers
16k views

Options for dummies. Can you explain how puts & calls work, simply?

I never understood Puts or Calls. Could anybody explain it like I were a child?
6
votes
2answers
2k views

Why won't my retirement account let me write a “covered put”?

My retirement account (a traditional IRA) will let me write a covered call, where I sell a call option if I have the underlying securities (for instance, 100 shares of IBM). The shares are required to ...
2
votes
2answers
122 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 ...
6
votes
3answers
16k 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 ...
12
votes
2answers
842 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, ...
9
votes
2answers
2k views

What is a stock warrant? How do warrants work?

What is a stock warrant? How do warrants work? I've been told they are similar to options; how? Then why not just call them options - what makes them different?