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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47 views

May I get more than the strike price difference when roll up an ITM call option?

I have an in-the-money call option that expires shortly and I see further upward potential of the underlying stock, so I decide to roll over to a longer expiration date. Now, if I choose to roll up to ...
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1answer
27 views

(Stock)/Option Positions

I'm studying for my SIE, and I have a question along the lines of Difference between naked put, covered put, protective put. Can someone help me fill in my "??"'s? "Long (stock)/Long ...
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What will be the impact of time decay on Options Premium?

Let's say you have bought a July Nifty CE or PE in June at Rs. 250 premium. Can you explain how its premium will change over time if nifty increases/decreases towards your strike price? Basically I ...
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62 views

How does strike price and assignments work

At the beginning of the week, a stock is $45. A one week $50 call is purchased. On Wednesday the stock fluctuates between $44 and $55, closing at $49. What price info is used to calculate if an ...
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Owning OTM Calls on a company that was acquired

I own 10 $stay calls exp 7/18 but they were purchased this week and the ticker no longer exists. Am I screwed? I can't find anything online.
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Option chain with nil bid quantity and price

Let's assume I bought a call option ABC CE @.50 and now its value is @.10. There is no bid price or bid quantity. Am I able to sell the option at @.10 anyway?
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75 views

If I short an option and the buyer exercises the contract, what will happen?

Let's say that I'm on TDAmeritrade. I short a call option to collect a premium. I also own 100 shares of the same stock in the same account. In a week, the option is in-the-money and the buyer ...
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1answer
55 views

Should I sell to open or sell to close

If I have inherited stocks through employer provided stocks (RSU). I haven't ever placed a "Buy to open" trade. If I want to sell a CALL option and place a trade (say current stock price is $...
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1answer
106 views

Who are the non-speculative buyers of futures options?

I am trying to understand who would be a non-speculative buyer of options contracts on futures. There are a plenty of descriptions of how options work online, but mostly they omit this crucial part of ...
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1answer
27 views

Taxes when exercising an option (not ISO)

Nearly all of the information that I can find online on option exercise and taxes are related to employee stock options, where you do get taxed on the gain (even if on paper) between the strike price ...
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1answer
54 views

Strange call options price in Germany?

Disclaimer: I'm a beginner in the options world, didn't do any trades yet, just researching. Today I looked at call options prices for BMW. On HSBC site I found this call option with expiration date ...
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3answers
103 views

How to buy 100 shares when exercising call option

I recently got into options, and I'm a bit confused on how to exercise my contracts. I have an in the money contract. I understant that if I sell to close, I sell the contract at its current price, ...
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Covered call help

I sold a covered call and received the premium right away. Question is the call now is the money and my total return shows negative. If when this call gets called away or close by expiration date does ...
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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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2answers
84 views

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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1answer
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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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40 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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0answers
39 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
369 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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1answer
76 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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7answers
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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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2answers
103 views

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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260 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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86 views

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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42 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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368 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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1answer
42 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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1answer
86 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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3answers
136 views

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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1answer
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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
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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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1k views

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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1answer
56 views

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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2answers
41 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
115 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
20 views

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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1answer
38 views

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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1answer
36 views

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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461 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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1answer
591 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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1answer
412 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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106 views

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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1answer
36 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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1answer
284 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
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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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