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.

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45 views

What will happen to Whiting Petroleum (WLL) options after restructuring completes

Whiting Petroleum is currently in chapter 11 restructuring. If the restructuring plan is agreed, existing stock holders will get a 3% stake in they call "new common stock" and bond holders ...
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1answer
2k views

How is it possible that these deep ITM stock options on DISH went from 52,000 volume, 550 open bids, 550 open asks to being completely dead overnight?

I bought 16 years of historical hourly stock options data for my personal investment study to test how particular strategies may have played out over a long period of time. I'm looking at the data for ...
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0answers
18 views

What is the purpose of a strike price in a barrier option?

Is there any real purpose to it? A barrier option is only triggered by reaching the barrier price anyways.
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1answer
97 views

Stock Option expiring before the announced acquisition, help!

I recently bought 17 Livongo $150 call options that expire on Aug 14th. LVGO closed yesterday at $144.53. This morning they announced phenomenal earnings and shares reached a high of $167.88 in the ...
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1answer
30 views

Options flow? Is it worth it?

How do you effectively use options flow to make better trading decisions? Is there any websites or resources to use this tool?
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1answer
53 views

How to correctly play a call?

Last month I bought four ATM CHWY calls: $50 strike price $1,660.00 cost per contract Expires on 01/2022 CHWY is now at $58.70 and if I sell, I would make about $1,500. I believe it will go up ...
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1answer
29 views

Prices increases leading to call debit spread loss

I recently entered a debit call spread on Apple and I noticed the price of the sold option appreciated at a faster rate than the bought option resulting in a loss even though the stock moved in my ...
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0answers
26 views

Difference between a shout option and a look back option? [closed]

What's the difference? A shout option seems to have the same properties of a fixed strike lookback option.
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4answers
176 views

What am I not considering in my current Financial Plan?

Standard Caveat: I understand the opinions expressed on this forum do not represent financial or legal advice. With that said, I have a long term goal to preserve and build wealth (in that order) and ...
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1answer
63 views

Stock or Options Exit Strategies

An investor has a small amount of $5000 to invest and grow it gradually in the future years by doing trades. His investment can go from $5000 to $6000 to $7000 in 3 to 5 years by buying when the ...
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0answers
27 views

How does TD Ameritrade calculate the overall volatility for each expiration? [duplicate]

The image below shows option chains in thinkorswim. Note the percentages on the right hand side: The percentage on the right hand side is the overall volatility for options in each expiration (while ...
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3answers
59 views

How the traders take profit from options that has too far Out Of The Money strike price?

Looking at the Amazon Options on this Yahoo page, there are 121 options interest for June 17, 2022 for the strike price of $5000. Assume that some traders bought the options when the stock price was ...
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1answer
42 views

Options Data Shows Buy/Sell?

I am trying to understand options data from CBOE and I am confused about determining if the contract was in fact bought or sold. Here's just a sample: [ { "exchange_id": 5, "...
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1answer
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Call Debit Spread Pricing

I bought an AAPL debit spread today with expiration on 8/7. Here the details: Exp. 8/7 Sold AAPL $365 Call for $32.85 Bought AAPL $360 Call for $36.40 Max Profit = [(365 - 360) * 100] - 400 = $...
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0answers
59 views

Is it possible to see market data for options trading?

Is it possible to see market data for options trading, i.e. that shows all placed option orders? Some brokerage platforms provide "level 2" order book information of all placed stock orders ...
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1answer
37 views

Are there stock options on OTC stocks?

I was looking for stock options for the largest companies that actively trade on the OTC market. For example, options on Tencent Holding Ltd. (TCEHY), Roche Holding Ltd (RHHBY), Nintendo Co., Ltd. (...
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2answers
53 views

How do in-the-money options get filled at expiration

I hold a profitable in-the-money call that I want to hold until expiration in order to lock in the highest return. I am unsure exactly what the broker's process is when an option expires with value. ...
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1answer
117 views

What are the situations that could cause unlimited liability in my stock brokerage account?

I have a stock brokerage account, and I want to make sure that the things I do in it will not cause me to be liable for more than the amount I put into the brokerage account. My question is: under ...
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1answer
35 views

How will Options on Micro E-mini S&P 500 futures be taxed in the US?

CME is going to publish a new contract: Options on Micro E-mini S&P 500 Future in Aug 31, 2020. I was wondering how will it be taxed? There's already discussion like Are futures options eligible ...
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1answer
86 views

Confusing loss on closing options spread

Today I closed a spread on $TSLA, specifically a 3x bull call expiring Aug 7th, 2020. The spread was composed of 2 legs as : Buy 1330 call Sell 1360 call My P&L on the trade before closing looked ...
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1answer
75 views

Unable to transact with OXY LEAP

I had bought long-dated Calls on OXY. Something happened around a month ago where the ticker I started seeing in my IB app turned to OXY2. Today I wanted to sell it and it seems the contract is no ...
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1answer
45 views

Help understanding Collar strategy

Could someone explain the drawbacks of this option collar strategy on PPL? It looks to me that there is minimum risk. I use Robinhood for my trades and pay no commissions/fees. Buy 100 shares for $...
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1answer
28 views

Adjusted Options (uncovered short puts) on Expiry

I sold 35 short puts (adjusted options) each for $1.30 premium a month ago. CHKA1 07/17/20 Put, Strike price $1.50, Underlying symbol: CHKAQ (formerly CHK) After CHKAQ went bankrupt and currently ...
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1answer
25 views

How to interpret Greek Delta for Options?

How to interpret Greek Delta for Options? First, I google. Pretty much anywhere i search, I stumble upon the same definition "Delta is the amount an option price is expected to move based on a $1 ...
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1answer
79 views

What to do with a call I sold

I own 300 shares of NCLH, I sold a call last Monday with strike price of $16 when the stock was at $15.8 for a premium of $115 (for the 3 calls). The Call expires tomorrow and I don't know what I have ...
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1answer
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How can I reliably “transfer” shares to another person by using market transactions? [closed]

Suppose I wish to transfer 100 shares of a $2,000 stock to person X (a trusted person). I have been holding this stock on behalf of person X for a few years now. Further suppose that it is infeasible ...
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2answers
62 views

Put option prices for IWM and SPY decreased on Jun 26, 2020

I own IWM and SPY index puts whose prices did not rise June 26, 2020 when both the IWM and SPY fell by more than 2%. For example: IWM 10/16/20 $95 put 1.92 x 2.01 B/A 1.93 close, down 0.05 SPY 12/...
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50 views

Wash sale and Options?

I'm confused on what it means to for security to be substantially equal? For example say I buy a call and then sell it for a loss before expiration. If I buy another call in the same underlying at a ...
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5answers
188 views

Buy Stock and immediately sell a call

I am new to options trading (<1 month). I recently sold a rental unit and I have been slowly allocating the cash into stocks. I want to utilize options and I need some help to make sure I am not ...
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1answer
39 views

Is it plausible for the bid / ask spread to move upward with zero volume and an option expiring worthless on the same day?

I'm studying historical options quote data, experimenting with different trading strategies and here's an example of what information I have for every option, recorded hourly: | [ 02-20-2004 16:00 ] ...
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2answers
41 views

If I write an option contract, sell it and then buy it back, will it still be an open interest?

If the original writer of an option contract buys it back, does that mean a reduction in the open interest? To my understanding, option contracts are written and then sold/traded/bought back. The ...
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1answer
66 views

Cheating the market by exploiting the difference between stock and option settlement periods?

This is sort of a follow-up question from: A few questions about stock investing After reading Baerker's answer, an interesting thought came to mind. Can a market manipulator exploit the settlement ...
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1answer
40 views

Why is a put on yields equivalent to a call on bonds?

Nassim Taleb makes the following assertion in Dynamic Hedging: A put on yields is a call on bonds, a matter of confusing importance. But I struggle to understand why that is the case. If I buy a put,...
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1answer
26 views

Order Type to sell options a few days before the Expiration

With the stock at $175, a novice trader buys 1 call option: Option Price: $20 Strike Price: $200 Expiry: December 15, 2020 Cost: $4,000 He wants to SELL TO CLOSE the option on December 1st, 2020 ...
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2answers
70 views

What will happen if CALL OPTION expire IN-THE-MONEY without sufficient funds?

Suppose a novice trader opens an online account with $5,000 with online trading platforms like e*trade, Ameritrade or Robinhood. With the stock at $175, the trader buys 2 call options: Option Price: $...
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4answers
390 views

How can “regular people” get 700k in debt on RobinHood

There was recently a story of a suicide of a trader(20 y old student) that accumulated 700k of losses. I am not asking here about a morality of this setup, I am just curious of the mechanisms... Why ...
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38 views

Does option “automatic exercise” take commission into consideration?

Automatic exercise is a procedure implemented to protect an option holder where the Option Clearing Corporation (OCC) will automatically exercise an "in the money" option for the holder, ...
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1answer
68 views

How long does it take to exercise an option?

If I have a call option and exercise it today will I be able to receive the shares immediately to sell them?
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1answer
26 views

Call backspread as being exposed to volatility

I watched a video about going long volatility within a portfolio via a call backspread. I previously looked into this via the "straddle" which is independent of the direction of volatility, ...
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2answers
49 views

Why is there “volatility” within this options generator?

At this webpage https://optioncreator.com/ one can choose volatility. I dont understand what that is suppose to mean, any ideas?
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1answer
44 views

OTM, Long Put Options in an All-Stock acquired company - did they die?

I have a small, few hundred dollar position in an OTM Strike ($22) put option expiring Jan. 2021 for KEMET (KEM). The company was acquired by Yageo recently. Yageo trades on the Taiwanese stock ...
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2answers
250 views

If I am buying a stock why don't just I buy an in the money option?

I'm a 15 year stock market investor here who is very new to option trading (two weeks). I have a full understanding of how options work (complicated needless to say) and I have realized their ...
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1answer
68 views

Can you borrow shares from broker to cover naked call?

If I sold a naked call, and the buyer exercises it. Can I borrow the shares from the broker to fulfil it?
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1answer
51 views

Buying a naked put option based on price speculation

I am very new to options, and was wondering about a scenario to generate income based on speculative price movement in the future. For example: SP-500 ETF currently trading at $200 Speculate that SP-...
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2answers
89 views

How to track options trading in GnuCash

I recently started experimenting with a bit of stock trading on the side – put aside a bit of money, small enough I could afford to lose it entirely, in an ETrade brokerage. I've been keeping my own ...
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1answer
45 views

What financial intrument pays out a fixed amount when a strike price is reached?

What is the name of the financial instrument that pays out a fixed amount when a strike price has been reached? For example, the contract may stipulate that I get paid exactly $100 when the S&P ...
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3answers
74 views

Where Can I Find Personal Advice for Options Trading? [closed]

I have spent the past several weeks researching options trading on the web. While I am confident with the key concepts, I feel that I could get caught out by technicalities when executing my first ...
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2answers
48 views

Stock splits and futures/options contracts

Let's say a company's stock is going to get split into two. All derivative contracts, such as options and futures, will be adjusted accordingly, of course. When are the futures and options contracts ...
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1answer
46 views

Basic Options Understanding

Two general questions: 1) If "A" creates a put option, "B" buys it, then resells it to "C". If "C" exercises the option, who gets assigned: "A" or "B"? 2) If I buy a call option, it has the same ...
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1answer
35 views

How do exercise oracles work in exchange-traded options?

I understand that this is basically an automated way to exercise an option for a customer as close to expiration time as possible, but I'm curious about how the system operates precisely. Does the ...

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