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.
1,167
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Open Interest vs Volume for Stock Options
Wanted to double check my intuition - What if there is only one trading day and the volume is smaller than the open interest on that one trading day. This is assuming there is no open interest before ...
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How does a person with a large equity in a company hedge his risk
How people like Bill Gates , who has the bulk of their wealth tied up in MSFT shares, hedge their downside risk in case the share price tanks?
If he were to buy put options like the rest of us, it ...
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Large volume options sell
In Casino Royale, the villain trades put options worth USD 100 million and loses. My question is say if he had won, would he have been able to sell the USD 100 million worth of options? Say option ...
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Selling the underlying in case a covered call is exercised?
If I sell an out-of-the-money covered call and the option becomes in-the-money prior to expiry, then am I forced to sell my underlying at the strike price (assuming the counterparty decides to ...
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How to trade stock e.g, BABA using monthly options (wheel strategy)?
Say you want to buy up to 400 shares of BABA in the current $130 range to $100. How do you implement an option strategy in the meantime to make some extra cash while waiting for a $10 stock gain?
Buy ...
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How am I notified a buyer if my option was exercised by the buyer on TWS? How much delay is there from when exercised to when I'm notified?
If I sell a call option out of the money that goes in the money before expiration, and if the buyer chooses to exercise the option before expiration, is there an immediate or delayed notification in ...
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Options Help - Partial allocation of shares?
I'm still learning options trading and got into it recently on Robinhood - but I have a few quick questions.
I have 2 contracts for ACB $12.5 Put 9/4. When I go through the steps to exercise it, I ...
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How implied volatility affect options pricing?
TSLA between 23 and 24 October 2019 had their earnings report.
TSLA mark price on 23 October was 252$. On 24 October, half an hour after market open reached 297$.
as we saw around 44$ push.
if ...
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What happen in this selling call option scenario
I am beginner in trading.
So scenario is: For e.g. until the expiry date i want the stock value to stay at $50 or less. But what happen if the stock price went high and then go down near expiry date?...
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Are binary options really part of trading?
I watched many videos and read many tutorials about binary trading.
If I really understood it, you bet that a quote/currency/stock market/anything will rise or fall within a period of time.
So, ...
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What is Derivative trading and why stock buying selling is not derivative
In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate.
By this definition stocks ...
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Selling covered calls does not make sense
I have one bitcoin and was thinking about selling call while owning the asset.
However after some pondering I came to the conclusion that if price drops then the strategy can only be performed one ...
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1
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Ratio Write and Income Taxes
Imagine that an investor owns 500 shares of the XYZ stock with a current value of 50 and a cost basis of 30. He then sells 5 call contracts with a strike of 65 for 2 dollars. Latter he buys back the ...
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Why wouldn't an option's last trade price be between the current bid and ask? [duplicate]
In the option table for SPY there is a column called 'Price' and a column called 'Bid' and a column called 'Ask'.
If I wish to buy a call option, I need to pay a premium. Which column is the premium ...
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290
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A goldsmith's hedging strategy, simplified
A goldsmith has bought 100oz physical gold for his trade and paid $1300/oz. He is going to be ready to sell his jewels in 3 months from purchase.
In order to hedge against falling prices of gold, he ...
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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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Options trading and arbitrage [closed]
Near market closing time on a given day, you lose access to stock prices, but some
European call and put prices for a stock are available as follows:
All six options have the same expiration date.
...
