Questions tagged [call-options]

A call option is a contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a pre-determined price within a specified time frame. Related tags are icall-options, options, options-assignment, option-exercise and should be used when appropriate.

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73 views

LEAPS instead of ETFS

I would like to get 1.5x Leverage of SPY. I want to use options. What is the best way to achieve it LEAPS?
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Buying an Option with a premium lower than the Bid Price

For a share trading at $272, I placed an order to buy an option with Strike Price at $275. The Ask is $10 and The Bid is $9. I entered at $9.10 with expiration in Sep. The order has not been filled ...
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Can option writers “buy to close” if holders refuse to sell?

I am new to option trading. How do we know an option is ITM on the expiration date when the underlying asset price could fluctuate throughout the day? If we short a call/put, understand that we &...
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What is the delivery time of the underlying stock on an option and what is the process?

I am new to option trading. I would like to know: For US options, what is the time frame for the underlying stock to be delivered once the call/put is exercised? If sell a call and I am unable to ...
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38 views

Call Option pricing when OTM

In this example, XLX of the binomial option pricing I am pricing American call options using the binomial method. I was wondering if in the first period (0.1), the price of the stock after a downside ...
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37 views

Price of a Call Option as you Increase the time periods

I'm pricing call options at the moment and seeing how call option prices change depending solely on the periods of volatility. In one case the stock changes every month, the other it changes every ...
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1answer
71 views

Do call options expiring ITM increase the stock price?

When call options expire ITM, the shares either need to be transferred (from an existing owner) or bought at the market price. I'm wondering whether this affects the stock price post-expiration? The ...
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71 views

If I buy to close a call position and the option writer defaults, am I liable for the original position?

Let's say that I sell covered calls and they are purchased by Alice. Later, I buy these calls (which were written by Bob) to close my position. Let's say that Bob's short calls were naked. Suppose ...
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Better terms to use to understand Puts and Calls for options trading

I've been trying to learn a little about options trading, specially puts and calls. The term options works well for my brain because someone is buying or selling the option to buy or sell something. ...
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When it comes to options, is there a “house” like with a sports bet bookie?

While learning about options trading, the following question came up. I'm hoping someone here can help answer it. Please excuse any (likely) imperfect terminology and understanding. Are call and put ...
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191 views

Very high strike price for call option (GME)

I noticed that there are many call contracts on GME at a strike of $800 that expire in 5 days. Currently the price of GME is at $110. I'm just wondering why anyone would go for such a high strike ? ...
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Options are basically bets between 2 investors?

Just so I have the concept correct. An option call is basically a bet between two people. One betting that the stock will go up while the other believes it will not. I can place an option call for ...
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Question about Call warrant

I have a question about whether I understand this correctly. Take the following warrant: Call 19.03.21 Tesla 540 Currently traded for 11.27€ (13.67USD). Am I correct to assume that once this call ...
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38 views

when do you decide if to execute an option?

I own a call option that expires on Friday. When do I decide whether to execute the option? The Saturday after?
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272 views

Wheel strategy (cash covered puts and covered calls) for an annual income

I'm curious if there's anyone selling cash covered puts and covered calls for income. If so, what is your monthly gross return in percent and how long have you been doing it? I'm considering selling ...
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Would my shares be sold if the price expired at above my call spread?

I own 100 shares of XYZ. I sold a call option on XYZ at a strike of $100. I bought a call option on XYZ at a strike of $110. The price of XYZ expired at $120. Will my 100 XYZ shares be sold and a ...
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Strike price confusion

I am reading a document that says The seller of 10 call options, with a strike price of 400 at CHF 8.00, (contract value 10), has the following risk What does 400 at CHF 8 mean? i.e. I understand what ...
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39 views

Do the people that sold naked calls that expire in the money have to settle up at the closing price on the day of expiry?

If a naked call expires Friday does the issuer of that call have to pay the 4:00 Friday price for the 100 shares or can they wait for a better price after hours, or the next day before settling?
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76 views

Can you sell out-of-the-money option on last day of expiration?

I have a $500C Jan 29 GME option expiring tomorrow. I bought it when this contract was at $9.30. If the stock goes to say $400 or $450 tomorrow and the stock price is still under my strike price of $...
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Trading with options and turn in profits

Yesterday I read an article about how someone was able to turn $ 200 into $ 113,000 in just one day by buying call options on a particular stock. The article also showed a screenshot which appears to ...
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2 questions about puts/calls/shorting

I have 2 questions about puts/calls + shorting in my learning about options. I'm confused about how "short selling" a stock is the same/different as "writing a covered call." In ...
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1answer
37 views

Option Premium Increasing Toward Expiration

I understand that premium pricing is dependent upon a few factors like intrinsic price and time value, the latter being affected by volatility. But as I look at my risk profile in thinkorswim on a ...
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Does exercising an option count as a gain?

I’ve always only sold options that I’ve had in the money. Of course sale of an option is income and will be taxed as such (assuming it’s been held <1 year). Now, for the first time, I’d like to ...
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Is american call option exercise taxable event?

Since best to my knowledge the premium paid for the call option has to be added to the strike price to calculate the post exercise stock's cost basis, I assume that the answer is "No, exercise is ...
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37 views

Tax treatment of call option that expires in the money

Suppose I buy a deep-in-the-money call option, it expires in-the-money, and I take delivery of the underlying stock at the strike price. Will a realized loss equal to the premium of the option be ...
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2answers
108 views

How to ensure that my shares are never sold when I write call options?

I own shares of stocks and ETFs that I plan to own for the long term (so as to avoid the short term capital gains tax). I also want to sell call options on these shares. I understand that the buyer of ...
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1answer
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Option Price Chart Data Not Matching with Table

I am studying the option price data for SPY Call Credit Spread 373/372 expiring Jan 15, 2021. According to this chart, on 12/24/2020, the price ranged from -0.87 to -0.02. At least that is what I ...
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Implied Volatility, % Change in the Option Chain

The following is the Options Chain of CRM (Salesforce) for March 19, 2021. A few questions from the chart: What does the % Change mean in this chart? What does the Volume mean? At the $300 strike, I ...
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Option Value dropped in 8 days even if the underlying price is the same

This is the Option Chart for TSLA JUNE 18 2021 $1050 CALL. It was bought for $47.50 per option. The underlying price was $645 when it was bought. Now after 8 days, the option value is $33.25. The ...
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Vanilla options on major US equity indexes – what is the best way to buy them via individual brokerage account?

Please help me with two questions: What is the best way to buy plain vanilla options on US large, mid, and small cap indexes, such as Russell. I’m looking for some actively tradeable options with ...
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454 views

Option Value going lower even if the Price of the Underlying stock goes high

Trader bought a one month $150 strike CALL OPTION on stock XYZ that is trading for $150. He paid $500 for the contract. After two days, the stock's price is $160 but the trader sees that his contract ...
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373 views

Does selling an OTM covered call affect the holding period of the underlying stock?

Given the following, ignoring commission, etc.: On 2019-03-16, XYZ is trading for $100.00. I purchase 1000 shares, for a cost of $100,000.00. On 2019-09-15, XYZ is trading for $150.00. I sell 10 XYZ $...
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255 views

Slack - Salesforce buyout, What happens to the Options?

I hold three call options of Slack. Average price bought: 15 * 3 = 4500; Book Value: 45 The current price for each call option is $18, and the stock is trading at $43. According to the press release:...
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What is the size of lot for options listed in Yahoo finance?

I am wondering what is shares lot size of options for any stocks in finance yahoo list. For example in this particular AMZN call option ask price is 251.85, expires in March 2021, and the strike is ...
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Trying to figure out how much I would make from call option

I bought a BABA call option this morning. $277.5 call, $2.87 price, expiration date nov 27. The contract is now worth $4.80. If I sold now would i make $210? (4.8 * 100) - (2.87 * 100). Also, it says ...
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33 views

Options move differently when underlying goes up vs down

I have been researching options and I have noticed that call options move differently when the underlying goes asset up vs. down. Mostly negatively for the investor. For example, I have narrowed my ...
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235 views

Low Strike Price Call Options strictly superior to stocks?

I was looking at AAPL $40 Call Options for Jan 2023, and I noticed that the break-even price is +0.35% of current. AAPL is trading at around 110$ at the moment. This means I could increase my exposure ...
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1answer
43 views

Binomial option pricing model. Comparing prices

I want to ask a question that may be too obvious for some of you, but: I calculated the price of a call option (expires in 7 months) using binomial pricing model and it is significantly lower than was ...
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Options trading and arbitrage [closed]

Near market closing time on a given day, you lose access to stock prices, but some European call and put prices for a stock are available as follows: All six options have the same expiration date. ...
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How does an option's premium depend on its strike price?

(NB: In this question's title, and elsewhere throughout this post, I have used the word "options" as a stand-in for both "call options" and "put options", for the sake of ...
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How am I notified a buyer if my option was exercised by the buyer on TWS? How much delay is there from when exercised to when I'm notified?

If I sell a call option out of the money that goes in the money before expiration, and if the buyer chooses to exercise the option before expiration, is there an immediate or delayed notification in ...
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1answer
62 views

What is the last possible time to exercise an equity option traded on CBOE?

I own 100 shares of AAPL an I am short the Oct 9 2020 $117.50 call. As per this CBOE link, the long holder may exercise that contract at any time before the contract expires, up to and including the ...
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66 views

Would a call option with one strike price be worth more than a call option with two different strike prices?

For example, say there is a call option with a strike price of $50 for a stock. Now, say there is another call option for the same stock with a strike price of $50 if the stock price is below $60, but ...
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1answer
309 views

Robinhood sell option not executing

I bought a few CCL calls and I am looking to sell. I placed a "limit sell" at consistently 10-20% under market price (there are large fluctuations), but it is not executing (1 day has passed)...
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164 views

Lifecycle Investing through index options

I'm a young DIY investor who is looking for ways to consistently implement the approach outlined in the Lifecycle Investing book by Barry Nalebuff and Ian Ayres. In short, they suggest using moderate ...
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265 views

How not to pay taxes on covered call

I bought 100 shares of ESPO four months ago for $50 and sold a September 18 $62 covered call at Robinhood. With the stock trading at $61.50, I think that it's likely that I will be assigned. I will ...
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179 views

Lot size for NASDAQ Equity options

I'm going to trade in NASDAQ equity options, please share link where I can find lot size of each equity option contract?
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How is it possible that these deep ITM stock options on DISH went from 52,000 volume, 550 open bids, 550 open asks to being completely dead overnight?

I bought 16 years of historical hourly stock options data for my personal investment study to test how particular strategies may have played out over a long period of time. I'm looking at the data for ...
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Stock Option expiring before the announced acquisition, help!

I recently bought 17 Livongo $150 call options that expire on Aug 14th. LVGO closed yesterday at $144.53. This morning they announced phenomenal earnings and shares reached a high of $167.88 in the ...
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Prices increases leading to call debit spread loss

I recently entered a debit call spread on Apple and I noticed the price of the sold option appreciated at a faster rate than the bought option resulting in a loss even though the stock moved in my ...

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