Stack Exchange Network

Stack Exchange network consists of 174 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange

Questions tagged [calls]

The tag has no usage guidance.

0
votes
0answers
19 views

PV of exercise price in put-call parity

We have put-call parity [value of call] + [PV of exercise price] = [value of put] + [share price] so, if we want to sell stock short, we have -[share price] = [value of put] - [value of call] - [...
0
votes
2answers
45 views

Getting puts though calls

From put-call parity we know how to get put options if they are not traded, i.e. value of put = value of call + PV of exercise price - share price According to that formula our actions would be: ...
1
vote
1answer
66 views

Hedging a portfolio using Bull Call Spreads

I'm having some difficulty understanding how one would hedge a portfolio using bull call spreads as outlined in the following paragraph ( Today is also a good day to revisit my suggestion for a ...
1
vote
3answers
102 views

Options: Trying to close a naked call position after the underlying drops in value

I'm having some difficulty understanding how this sort of a trade example would play out. Some input would be very much appreciated! Let's say $FB is trading at $184 today. I write OTM naked ...
4
votes
1answer
43 views

Obtaining Private Prospectuses

I am interested in obtaining business model information about private companies. Specifically, I would like to know about things like, areas of growth, short falls, challenges and guidance. How can ...
3
votes
1answer
741 views

Why are american call options more valuable than european options ONLY if the underlying asset pays cash flows?

While studying for the CFA, I ran into the following statement in my study materials: "American style calls are only more valuable than European style calls IF the underlying asset pays cash flows, ...
0
votes
1answer
69 views

How much money are you actually trading with options?

In my Investments class we are trading options. I bought a TSLA call option for 8.80. I know that options come bundled in groups of 100. So did I actually invest $880 or did I only invest 8.80? I sold ...
5
votes
2answers
2k views

Strategies to recover from a bad short-term call options purchase where the underlying dropped instead?

If I bought some short-term call options on an expectation that the underlying stock would go up, but instead the underlying stock declined some, shortly after my options purchase, what choices are ...
4
votes
1answer
123 views

How can I sell INTEL covered calls?

As shown in this picture, how do I execute the strategy highlighted in yellow? I am based in the UK. Source: http://seekingalpha.com/article/274231-intel-dividend-champion-in-the-making (10/6/11)