We’re rewarding the question askers & reputations are being recalculated! Read more.

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
3 views

Options trading Historical data

I wanted to know if there is such a site where i can get historical options data. Where i can see what the price of particular option strike price was after a few days? Thanks
0
votes
4answers
85 views

Option implied volatility and 95% losing trades?

I trade options. Whenever I buy puts or calls, I end up breaking even or losing, sometimes losing a HUGE amount of money even though price has gone my direction and time decay (theta) has been ...
1
vote
1answer
57 views

How do I know what option on a particular stock X will move the most?

Say for instance I have a view that MSFT in the coming 3 months is going to come out with a big upgrade to their full year guidance. Let's assume in the event that this happens the stock goes up a lot ...
0
votes
1answer
52 views

Which option greeks explain the majority of an option's price move?

I have recently picked up a few derivatives books for leisurely reading and have started to look into the option greeks. There are many e.g. delta, vega, theta, and gamma. There are others which are ...
1
vote
1answer
115 views

As a trader, why would you trade forex or options/futures instead of stocks?

My apology for the novice question: I've seen a certain number of people trading forex, future or options as their full time career, and my understanding is that they have all been through stock ...
0
votes
2answers
57 views

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 ...
4
votes
2answers
286 views

Can you buy an option and immediately exercise it? Options delays questions

Assuming American Options Can you buy a stock option and immediately exercise it - or are you only formally given control of the option at the end of the trading day? Would you be able to sell it ...
2
votes
1answer
88 views

When does stock options start expiring on Monday and Wednesday?

I recall that traditional options expire on the 3rd Friday of the month and that weekly options expire every Friday. I was looking at Yahoo Finance and I saw some options that expire on Oct 28, ...
4
votes
1answer
41 views

When should a covered call option be bought back to avoid assignment

I am trying to learn options. I sold a covered call (weekly option) that will expire on October 25th and I want to avoid being assigned. Should I buy it back on 24th (one day early) or can it be ...
5
votes
1answer
60 views

Are options on popular ETF considered section 1256 contracts?

I want to learn about 1256 contracts and am wondering if options on common ETFs (like QQQ, SPY, DIA) (not futures) are considered section 1256, because these ETF tracks broad market but does not ...
1
vote
1answer
80 views

Understanding the notion of future options

I am currently studying different types of option-related derivatives and I am quite confused about the notion of “futures options”. My textbook says that A futures option is the right, but not ...
5
votes
1answer
131 views

Do options have CUSIP numbers?

If so, then where to find them?
2
votes
1answer
58 views

what if change in open interest is very high but volume is low [closed]

in a strike price the change in open interest is 1300000 with volume of just 1800, what does it mean if it possible please also explain difference between volume and change in open interest.
3
votes
9answers
512 views

Are stock options worth as much as shares?

I was undergoing salary increase negotiations (after a year) recently and it was decided a percentage of my salary was to be paid in shares. However, when the offer came, I noticed I would be getting ...
2
votes
2answers
73 views

Exercising Options question. Please check my math

I'm spending some time learning options and I have a scenario question. I'm attempting to have this make sense in my head but this just doesn't seem right or maybe I'm missing something. I see this ...
-1
votes
1answer
40 views

How to know when to buy a call versus a put through options statistics

Is there a good method or set of methods that traders can use to know whether to buy either a short term call versus a short term put using only numbers provided in options trading?
0
votes
1answer
52 views

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 ...
2
votes
3answers
109 views

Are there investable securities that grow nonlinearly/exponentially with the underlying asset?

Let's say I'm a commodities trader, and Jesus Christ himself has just told me that gold is about to become much, much more valuable. We'll leave the debate on whether that's insider trading to another ...
3
votes
3answers
104 views

How to calculate the relationship between a long put and a long call with the same strike price

I have noticed that, a lot of the time, long put and call options have different prices even if they are the same distance from the strike price (lower and higher respectively). Is there a name for ...
2
votes
1answer
69 views

Tax implications of rolling covered calls

I have friend who is using the covered call options. Some time these covered calls are near assignment and then my friend rolls these calls with higher strike price. What are the tax implications ?
3
votes
5answers
105 views

Realistic option graphs?

Typical option graphs are only valid at the time of expiration: This only expresses what happens at the moment of expiration (and ignores trading costs). But what about extrinsic value (theta and ...
7
votes
2answers
2k views

Why do options retain significant extrinsic value after market closing on day of expiration?

Introduction to options sources invariably say an option's extrinsic value becomes zero at expiration. However, in reality this is not the case. For example, it is almost 7pm on 8/21 and "8/21 292 SPY"...
3
votes
1answer
133 views

I sold call options that expired ITM. Why were they not exercised?

I sold two covered call positions that expired Aug 9. Both expired ITM. The 1st one's strike price was $3.00. At expiration, the stock was $3.13 so 13 cents ITM (6 contracts). The 2nd one's strike ...
1
vote
1answer
38 views

How to research option maturity dates and volume [closed]

Hello stack exchangers How do I get a list of stocks with their option maturity dates and volume? I am interested in stocks that have frequent maturity dates and high volumes. Once I have a list ...
1
vote
1answer
41 views

Are funds securing short puts in a cash account considered settled for free-riding?

For cash-secured put writing, I have enough cash in my account to cover the put if it is exercised. Is there a special category that this cash falls into with respect to free-riding? Say I wrote a $...
2
votes
2answers
65 views

How does exchange match multi-leg option orders?

Suppose I submit an order to open an iron condor or some other multi-leg stock option spread with multiple buys and sells. For example, if SPY is trading at 275, I might want to: sell a call at 290 ...
1
vote
1answer
54 views

Size limit on option buying and selling

While using Robinhood I have found that can buy/sell a maximum of 200 call options at a time. Is this a general rule for all trading clients at other brokers such as Ameritrade, Merrill Lynch, etc.?
0
votes
2answers
424 views

Selling options below bid on Robinhood

If you sell an option for cheaper than what is someone willing to pay, does Robinhood sell it for the best price or for the price you chose to sell it? I'm trying to figure out if I can do stop loss ...
2
votes
2answers
179 views

Why are vertical option spreads level 3, requiring margin?

Why are vertical spreads (e.g., buying a call at one strike and selling a call at another strike, at the same expiration date) classified as "Level 3" options strategies, therefore requiring margin? ...
0
votes
1answer
93 views

When an option expires does that constitute a buy or sell

A similar question recently asked about stock sales and option buys triggering wash sale rules. If an option expires, is that considered a buy/sale ? What I mean is: let's assume I have a call ...
0
votes
1answer
1k views

Robinhood doesn't allow you to exercise call options in the app?

On the Robinhood website, https://support.robinhood.com/hc/en-us/articles/360001331403, the following is written about exercising stock options: Can I exercise my call before expiration? Yes. ...
0
votes
0answers
110 views

Nadex binary option - trading at excessive prices?

I recently came across Nadex and in particular their binary option markets. Such an option pays off $100 or $0 depending on whether a specific exchange rate exceeds a strike price at a specific date. ...
2
votes
2answers
186 views

Why are options only traded during market hours?

I was wondering why options are only traded on exchanges during market hours and not after hours like stocks. Is it a liquidity issue? For the mega cap stocks though, even the options market has a ...
0
votes
3answers
71 views

Option trading spreads

When doing a vertical ( or any ) option spread trade how can you do it with options without having to actually buy 100 shares of stock? Is it possible just by buying 1 option contract? How is this ...
2
votes
1answer
46 views

Are there any other benefits to exercising EMI stock options straight away vs. as late as possible? (UK)

Once my options vest, according to the EMI scheme I have ten years to exercise them. I'm weighing up the pros and cons of exercising exactly at the point they vest versus leaving it to the last ...
0
votes
2answers
57 views

Put IVs being more than Call IVs - Can this be considered a bearish signal?

If in an Option Chain, 1) Average Put IVs are 4-5% more than average Call IVs 2) IV of Put Options, in general, is more than IV of equidistant Call Options (For eg . - For a stock @ 100 spot price, ...
3
votes
3answers
149 views

Determining the price of an option when it hasn't been traded recently

I am looking at MDB LEAPs. Right now the price of the stock is up about 7% from open. Some calls are up, and some puts also show up, which I guess is because they haven't traded today (I am using ...
1
vote
1answer
55 views

Naked Put at Expiration

For most brokers, how naked put works at the expiration? Buy the option at that price, if ITM. Buy the underlying stocks if having enough cash in the account. For 2, does it depend on if the option ...
3
votes
4answers
247 views

Trying to get my head around how options work

A stock X is trading at $215. I bought a put at a strike price $195 for $2.55 premium(paid $255) expiring June 7. Today the stock is down by $15 to $200. However, the price of my put is reduced from $...
4
votes
3answers
206 views

Sold a bullish vertical credit spread and was assigned early. Need information about a margin charge

Recently I was assigned on a short deep in-the-money put. It created a huge margin call. I called the broker the following day to exercise my long put to flatten out the position. He did that ...
0
votes
1answer
117 views

Iron Condor Profit Probability

I'm trying to see if I understand Iron Condors correctly and how to assess whether or not the risk is worth it for a given set of circumstances. The maximum profit on an IC is realized when all ...
1
vote
3answers
198 views

How to buy a contract for S&P 500 index?

I am researching writing covered calls on S&P500 index. So in order to sell covered call I need to buy a contract for S&P500 index. I've never traded indexes. What exactly I will be buying (...
0
votes
2answers
57 views

Is there a relationship between Post Hours Trading Volume spikes and Options?

So, I have watched a short video (https://www.youtube.com/watch?v=lXRAhoNd-50) of Lawrence McMillan talking about trading options on or near expiration. He discuss that arbitrageurs says that they buy ...
1
vote
3answers
342 views

Who do you buy options from, if open interest is zero?

If open interest is 0, who will you buy an option contract from? And how the price is calculated? Also, initially, how the option contract price is determined?
3
votes
3answers
326 views

How to Hedge delta and gamma of a put option simultaneously?

Say you took a short put position of 100 options (as you feel the option is undervalued). This put has a Delta of -0.5, so to make the portfolio delta-neutral you short 50 shares of the underlying ...
1
vote
1answer
64 views

Mortgage Holders as Option Writers

Can someone explain to me how does it benefit the mortgage holder to be a writer of the option call on the long term debt and the put option on real estate prices? Other than the premium be gained I ...
1
vote
1answer
44 views

payoff at expiration of a protective put

Hello the question I was asked was What is the payoff at expiration of a protective put (a portfolio consisting of one share of stock and one put option on that stock with strike price K) if the ...
1
vote
2answers
139 views

Delta of a Vertical Spread | Slower than delta of long option?

People often prefer to trade options spreads rather than buying options, since those reduce your cost and have a defined profit and loss but what is the probability of success of a spread? For example ...
0
votes
0answers
29 views

Futures and premium

A stock will either go up to uS or down to dS next period. The risk-free rate is r. I'm using replicating portfolios to derive the premium on a futures contract with futures price F. What would the ...
3
votes
2answers
143 views

Why certain ETFs are popular( liquid) but Options on very same ETF are not

For example on comparing EEM/VWO , SPY/IVV/VOO etc and I always wonder why some ETFs are popular but options are not. I see a question How to pick ETFs that hedge against stock market crashes? that ...