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Questions tagged [options-clearing]

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1
vote
1answer
394 views

What exactly is the difference between a clearing house and a counterparty clearing house?

I know this may sound like a stupid question but I have not yet found an adequate definition of the two that can clearly tell me the difference between them.
7
votes
4answers
840 views

What happens to all of the options when they expire?

Most option traders don't want to actually buy or sell the underlying stock. They just use options as a trading vehicle perhaps making money on the time decay, on changes to volatility, etc. My ...
2
votes
2answers
268 views

How safe is an option contract?

I know the Options Clearing Company guarantees the fulfillment of every option contract and it never happened that a option contract defaulted in history. So what could you imagine must happen so a ...
4
votes
1answer
2k views

How can the writer of an option cancel or reverse the position & obligation before exercise or expiration?

How can the writer of, say, a call option cancel or reverse the position and its obligation (to deliver shares) before the option is exercised or the expiration date reached? Can an option that has ...
2
votes
1answer
2k views

Who is the issuer in a derivative contract?

In the case of a bond or a share, there is a bondholder or a shareholder on one side and a company issuing the security on the other side. In a derivative contract, which party can be named as the ...
0
votes
1answer
1k views

How prematurely can one withdraw from NSC?

I have purchased NSC in April 2011. I would like to withdraw the same. Is it possible? If yes what procedure do I have to follow? Also tell whether the same can be withdrawn from any one post office ...
18
votes
2answers
37k views

What happens to options if a company is acquired / bought out?

I have some out of the money options with pretty far off expiry dates (Jan 2013, for example). What happens if the underlying company is acquired before then, while I'm still holding the options? Do ...