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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Can companies raise cash by selling covered call options on their treasury stock?
Suppose a company has lots of treasury shares. Can it raise cash by selling call options covered by the treasury stock? If the stock price ends below the strike price of the calls sold, then the ...
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Question about CC
I think I'm confused about parts of the CC process. If you're feeling charitable please help a brother out.
My understanding:
I buy 100 shares of ABC @ $25 (5 days duration)
Sell 1 CC contract of ABC ...
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How does expiration/assignment work in synthetic covered call
What happens if I let a short call expire worthless on a synthetic long stock I've purchased.
Here's my scenario.
Bought a CALL @ 870 and sold a PUT @ 870 both expiring in 177 days. Also sold a CALL @ ...
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What is the effect of a short stock position on the value of an option?
I'm reading the book "Option Volatility and Pricing" by Natenberg and there is a paragraph I'm having trouble understanding.
Chapter 7 (Risk Measurement 1), Page 98, Paragraph 2:
The value of a ...
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why CRWD OTM calls were bought <10 minutes before expiry
CRWD was around 349 when the options were bought. within 2 mins of time, I have seen CRWD 365C hitting repeatedly which were expiring in 10 mins (times shown in the image are PST) and the money is not ...
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Large ATMU trades : were they sold calls or a bull call spread?
Here's all the options trades for ATMU on 2024-03-21 that had a premium greater than $10,000:
I've highlighted two that were both of size 10,000.
In both of those, the price is closer to the 'bid'. I....
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DOW Mini Futures Options Liquidity - Symbol YM
I am trading on the Interactive Brokers TWS platform. That is the name of the broker and the platform they offer that I use. I have noticed that there is almost no liquidity on the YM Mini option ...
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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 ...
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'Inversion' of option chain: calls are more expensive than puts above the strike price! GME
Over the past two days there has been a weird phenomena on GameStop's options where the call options are more expensive than the put options above the strike price. I would have imagined that some ...
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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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What happens to my Long Put (Bought Puts) when company file chapter 11
What happens to my long put that i buy for Dec 2020 if the company files for chapter 11 in Nov 2020 or before option expiration.
Would I be able to sell those long puts to get maximum reward for ...
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Why is this option trade considered over the counter
In this article
the author says:
Since June 24, crude prices halved while CVX has dropped only 20%.
SPY has risen slightly less than 3% during that time period.
What’s a good options ...
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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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How implied volatility affect options pricing?
TSLA between 23 and 24 October 2019 had their earnings report.
TSLA mark price on 23 October was 252$. On 24 October, half an hour after market open reached 297$.
as we saw around 44$ push.
if ...
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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 ...
