Questions tagged [options]

This tag is to be used for any question on Options, A more specific tag [put-options, call-options, options-assignment, option-exercise] should be used when appropriate.

Filter by
Sorted by
Tagged with
0
votes
0answers
11 views

Leverage through LEAPs for DIY investor [closed]

I'm a DIY investor that tries to implement the advice given in the Lifecycle Investing book - to use moderate leverage in the initial years of investing for future retirement. The authors suggested ...
0
votes
2answers
66 views

Writing call options, when do I receive premium?

I own 100 shares of a stock and I would like to get into writing covered calls. I'm just curious: If I write a contract, do I immediately receive payment for it from my broker? Or do I have to wait ...
0
votes
0answers
27 views

An Option order conditional to ticker price

On thinkorswim, preferably within ActiveTrader somewhere, is there a method for placing a Call/Put Market Buy that is triggered by the ticker's stock price reaching a specified value? (As opposed to ...
0
votes
0answers
59 views

Unintended information asymmetry in the stock market caused by options market makers

I just went over a publication "Hedging by Options Market Makers: Theory and Evidence" by Sahn-Wook Huh, Hao Lin and Antonio S.Mello One of the ideas they touch on, is that Options Market ...
0
votes
1answer
59 views

List of all option contracts [closed]

I am looking for a downloadable list of all option contracts for US equities, as opposed to resorting to scraping. A list of commodity options would be a bonus. I am looking for an official source ...
0
votes
2answers
48 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 ...
0
votes
1answer
29 views

Do option spreads affect the holding period of the underlying stock?

Say I have 100 shares of ABC that are currently short-term. If I sell an ABC put credit spread and close either or both legs within 30 days, would it reset the holding period on the 100 shares of ...
0
votes
4answers
53 views

Put option premium decreasing when underlying is also decreasing

Had some spare cash, decided to buy a weekly put for a 7/16 expiry with a $15 strike, $0.55 premium that had an IV of ~500% and I purchased 5 contracts, for a total of $275. The underlying has fallen ...
0
votes
1answer
93 views

What happened if I don't buy back the profitable put option I sold two weeks ago?

Let's say I sold a TSLA put for 2$. If the underlying price moves up, I can buy it back when reaching 50% percent and collect 100$. What happened if the price moves up and I don't buy it back, do I ...
0
votes
2answers
43 views

Is Margin Interest Rate of a Brokerage Relevant?

I've seen brokerages intensely advertise their margin interest rate, and I've seen this being use to compare them. Why is this important, when you can get a low interest rate loan using in the ...
0
votes
2answers
34 views

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 ...
0
votes
3answers
65 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 ...
0
votes
0answers
26 views

Is there charges for unfilled option

I failed to get filled on an option trade and was canceled. Will I be charge a fee still or only when an order is filled? Thanks.
2
votes
2answers
39 views

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?
0
votes
2answers
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 ...
2
votes
2answers
109 views

Significance of the word iron in option strategies

Why is the word iron used in some of the option strategies, like iron butterfly or iron condor ?
0
votes
4answers
122 views

After you sell a put option that you initially bought from an option writer, are you still responsible for buying the shares if it's exercised?

I'm a little confused on how options trading works, namely what you are selling when you sell an option. Let's say you buy a put option for 100 shares at a strike price of $100 for a company XYZ that ...
3
votes
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 ...
0
votes
2answers
64 views

Where to find a list of US stocks with monthly expiration options only? [closed]

Does anybody know where to find a list of US stocks with monthly expiration options only (no weeklies plz) ?
0
votes
1answer
56 views

Are gains/losses on selling 12 months+ puts short- or long-term capital gains/losses?

If I sell a put and only close the transaction after 12+ months of holding that position, is it a long- or short-term capital gain/loss? Some more context: For part of my portfolio, I sell some long-...
0
votes
1answer
43 views

Can you explain to me, in what months are the futures and options on gold and silver listed, based on the CME description?

I read the following contract specifications from CME and couldn't figure out/understand it. On Gold; Futures: Monthly contracts listed for 3 consecutive months, any Feb, Apr, Aug, Oct in the nearest ...
0
votes
2answers
71 views

Managing Long Straddle

Am a beginner in option trading. Recently started learning option strategies. The long straddle looked particularly appealing. However to make a profit the underlying needs to move, lets say around 2%....
0
votes
2answers
45 views

Protective put became ITM before expiration. How to prevent option exercise?

Options beginner here. I have a protective put on a stock and it became ITM 2 days before expiration. I do not want the option to be exercised, since I’m bullish on the stock, and want to continue ...
0
votes
0answers
64 views

How do “Crabs” make money exactly? [duplicate]

So again i'm used to Crypto Currencies, and since im stupid i learn most things from threads from /biz/ (fortunately i still take decisions based on myself), i've seen plenty on lingo like a bull ...
-1
votes
1answer
77 views

I bought an option it has a volume of 3 it expires two weeks from the purchase date it jumped 650% and drops then rises even higher

I bought 5 options contracts. It goes from being worth $125 then shoots up to over $1,000 then decreases in value when I try to sell. I tried to sell three times while it had a 552% increase, but it ...
0
votes
3answers
104 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, ...
10
votes
3answers
3k views

Company just got acquired. What does this mean for my common stock?

I own 200 common shares of a private company I worked for up until about 3 years ago. Today, I read in the news that they were acquired for a LOT of money but I don't know yet what the current stock ...
2
votes
1answer
55 views

Why there are duplicated option chains in futures?

As in the screenshot, there are two and three similar option for the same contract with same expiry date. What is the reason ?
1
vote
1answer
91 views

How to read double apostrophe prices in futures options?

How to read double apostrophe prices in futures options?
1
vote
1answer
91 views

Are future options per 100 unit?

In futures (for commodities, indices, fx...); Is 1 option for 100 future contracts ? For example: If I want to make a covered call option for Gold and for micro Dow jones future, How much should I buy ...
0
votes
1answer
36 views

Availability of proceeds from the exercise of a long put

If I bought a put option in a cash account, it expired ITM and was exercised automatically on Friday, could I use the proceeds on Monday or would I have to wait T+2 working days until Wednesday for ...
0
votes
2answers
57 views

Is It easy to buy back a put-option on its expiry date?

Say I sold a BABA put expiring 5/24 . The usual advise is to close at 50% profit. What If I leave my position open until the expiry date. The put option will be expiring with no value for the other ...
0
votes
2answers
46 views

Covered call selling and wash sale or potential IRS problems?

I have a stock position that went south really quick and I have been holding on for about 5 months now. My last average down was 4 months ago. My average price is $12 and the stock is currently ...
1
vote
1answer
46 views

Is using proceeds from a short sell or put option to cover the cost of excercising a call option considered freeriding?

I heard that freeriding is not having the cash to pay for the underlying shares when a call option is exercised. If I purchase a call option that is ITM and (purchase a put OR short sell) above the ...
0
votes
1answer
124 views

Iron condor - can the described scenario happen?

Options beginner here. Cannot wrap my head around this. Say I’m trading a long iron condor and the call spread ends up in the money on expiration. Now I can exercise the long call. So should I wait ...
0
votes
1answer
34 views

How to calculate break even price of Bull Put Spread and Bear Call Spread

I need some help confirming if I am calculating the break even price correctly for both Bear Call Spread and Bull Put Spread. For Bear Call Spread, I have: breakEvenPrice = longLegStrike+(longLegCost-...
0
votes
2answers
160 views

Can I buy an option that have zero price?

If the option price in market is zero, Can I buy it ?
0
votes
2answers
78 views

Why does an option have the term “weekly”?

I am new to option trading. I created a paper account in TD Ameritrade, and I noted some options are termed with "Weekly". Eg "May 15, 2021 (13 days) Weekly 100" "May 22, 2021 ...
0
votes
2answers
80 views

if I sell to open a contract and the buyer buys to close a contract, will I get notification?

I'm reading/watching the basics of options trading. I opened a demo account but until now, when I open an option contract, I have only gotten one of these three notifications\messages: working, ...
0
votes
2answers
62 views

Sell to Open PUT - Assignment of shares before long expiration

I would like to sell 5 contracts (Sell to Open - Cash reserved PUT) for stock C3AI with expiration of Jan 23 for a strike price of 60 (Stock trading at $69 at this moment). That gives me $9800 premium....
1
vote
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 &...
1
vote
1answer
36 views

Wash sale clarification on options trading

If I buy deep in-the-money put options, and sell not so deep in-the-money (higher strike priced) put options and if both expire worthless, will I not be allowed to deduct the loss incurred from the ...
0
votes
1answer
86 views

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 ...
0
votes
0answers
33 views

Where Option Credit gets added

I have a question, when you sell options (call or puts) you get credit upfront, but my question is where you can see these credit amounts? In "Stocks & Options" or in "Brokerage ...
0
votes
1answer
42 views

is mark to market accounting has to be FIFO?

I am thinking to file for the mark to market trading account but I do not like FIFO. Is FIFO part of mark to market accounting?
0
votes
1answer
62 views

Thoughts on this wash sale scenario

I traded options and believe had several wash sales. Does it matter if they're puts or calls or sell to close or expired? Is it possible they're not wash sales as wash sales are not indicated on my ...
1
vote
3answers
64 views

Do options contracts give you cash or the underlying?

Whenever I read about options valuation, it's phrased in terms of payoff diagrams. For European options, the value at expiry is the difference between the strike and the market price of the underlying ...
0
votes
1answer
51 views

Old option chain symbols

I am going through my investment history, but there are a lot of option trades that don't make sense. For example, in 2009, "OZC Jan 22 2011 25.0 Put" was the $25 put for QQQ expiring in ...
0
votes
2answers
41 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 ...
0
votes
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 ...

1
2 3 4 5
22