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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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?
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Exercising an option without paying for the underlying
As a follow up to my other question, I would like to know whether the following is possible:
I have $20,000 in my brokerage account
The price of a call option with $300 strike price is $5.00 (1 ...
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At what time of day does time value fall off of a call option?
As days tick off of call options, time value decays. My question is does that happen automatically at 9:30AM at market open or does it get continuously deducted as the day ticks on?
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What happens to an options contract during an all stock acquisition?
Let's say for the sake of the question you're given the following scenario:
Company BIG is trading at $10/share
Company SML is trading at $40/share
BIG reaches an agreement with SML for an all stock ...
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Why would someone want to sell call options?
I'm having trouble understanding why someone would want to sell call options. For example, if the writer of a call option owned the shares and they expected the share price to fall, why wouldn't they ...
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Can you buy an option and immediately exercise it? Options delays questions
Assuming American Options
Can you buy a stock option and immediately exercise it - or are you only formally given control of the option at the end of the trading day? Would you be able to sell it ...
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My out-of-the-money call options are near expiration and won't sell in the open market. What are my choices?
I had attempted to sell my contracts off today but was unsuccessful. They are currently OTM options and will expire tomorrow. What can I do to minimize loss and why was I unable to sell?
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Why do people exercise call options at a loss?
I sold some call options for $2.55 premium at strike price of $130. At expiration, the market price was $130.55. I thought the option was not deep in the money and at a loss of $2, hence I didn't ...
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What are the odds of being assigned for a long dated in-the-money call option?
If I sell a 2-year future dated call option that is slightly in the money (For example if Citi today is $5.13, I sell a call option for strike price $5.00 at Jan 2013 - today is Jan 2011), what are ...
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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 ...
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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 ...
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Starting with options trading
I am a regular trader with stocks but I am a complete beginner with options.
I am referring to a few online resources like here and here
However, I have a few questions.
Say I call a stock at $50 ...
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Adjusted Options (Long Calls) on Expiry
I bought Long Calls (options) almost a year back. This trade was made in 2019:
CHK210115C3.5
Strike price $3.5
Underlying symbol:CHK
Expiry: Jan 15 '21
After CHK underwent a 1:200 reverse split two ...
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How to estimate or determine leverage from strike price on ITM call option?
In this text 4x leverage is mentioned:
"ITM call options have a strike (X) below spot price (S). ITM call
option position is determined by aiming for ~4x leverage. The position
size is set at 33%...
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Robinhood doesn't allow you to exercise call options in the app?
On the Robinhood website, https://support.robinhood.com/hc/en-us/articles/360001331403, the following is written about exercising stock options:
Can I exercise my call before expiration?
Yes. However,...
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Finance: replicating portfolio for a European option
The replicating portfolio for a European call option involves a long position in
A
, while the replicating portfolio for a European put option involves a short position in
A
.
Can you explain why this ...
