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If you look at DISH's dividend history, you can see that on 20111101 DISH declared a special $2/share dividend payable on 20111201. The ex-date for that 8% dividend was... 20111115. The $2/share drop you saw from the 14th to the 15th was the stock going ex-dividend. So the stock options (which are American options) were deep in-the-money with a large ...


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For every trade there is a buyer and a seller. If a trade goes off at the ask price, it's highly probable that it was a buy. If a trade goes off at the bid price, it's highly probable that it was a sell. Why highly probable and not definite? Suppose two options each have a 30 cent wide B/A. I place an order to buy some vertical spreads at the midpoint. ...


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Based on the quotes you provided, the fill would be for a credit of $3.55. For a debit spread, the maximum, profit would be the difference in strikes less the premium received or $145. I can't answer your question about the $45 decrease because you didn't provide the quotes of the respective legs as well as if this was a real time valuation based on the ...


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You are directing 23% to savings, 25% with company match. The high bond choice in acct 2 seems conservative to me. I (we, with my wife) were nearly 100% stocks, S&P index for most of it, right until retirement. Now, a 70/30 mix. All in all, you seem to have things well thought out.


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You are short the call. It is a liability that you must satisfy and therefore the Market Value is negative. Here's an example that might be an easier way to understand it. You sell a call for $10. Assuming no commissions and fees, $1,000 is deposited into your account. Your cash balance increases by $1,000. Has you account value gone up by $1,000? No, ...


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Would you rather own a $20 stock that goes up 10% or a $1 stock that goes up 100%? Comparing percent gain is worthless. If you look at real time quotes, when there's a significant move like today (up 10+ dollars), for a stock with liquid options, the lower call strike will always appreciate more than higher call strike. The quotes that you provided are ...


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With both stocks getting whacked, clearly, the market doesn't like this merger. Your 8/14 $150 calls dropped $7.45 today. If LVGO is below $150 on 8/14, these calls will expire worthless. When the merger occurs, the option contracts will be adjusted. You will receive 59.2 shares of TDOC per 100 shares of LVGO plus $11.33 in cash. If you multiply .592 ...


1

...can I just assume a logarithmic base 10 decay? I don't know what that curve looks like so I can't say if that's appropriate. However, theta is non linear and can be easily determined by utilizing an option pricing formula (Black Scholes, etc.). CHWY is now at $58.70 and if I sell, I would make about $1,500. I believe it will go up much higher in the ...


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Since you asked about what you may not be considering, I would suggest you think about potential changes to your personal and/or family life. If you decide to have a family, you may find yourself much busier and that you have very little time to manage your finances and investments. Make sure you are able to do so with minimal effort. Having children can ...


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Trailing stop orders can protect your investment as long as the retracement is orderly. If the security gaps down then the amount of loss may be more than hope for. A protective option will provide a hard stop. The drawback is that it has a cost which adds drag to a portfolio. One can reduce/eliminate this cost by collaring long and short positions but ...


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It's hard to make a good case for buying or selling a June 2022 $5,000 call. However, not all investors and traders are logical. Here are some possible reasons for using far OTM options: The option is under or overvalued and the outlook is for a reversal in IV and price The option is being used for risk control in a more complex option strategy (vertical ...


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The value of an out-of-money option comes from the possibility that the stock fluctuations will be large enough, and in the right direction, to put it in the money. The longer the time frame, the more opportunity there is for the option to go into the money, and so it will be more valuable. As time goes on, there's less opportunity to get into the money. ...


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There are some strategies that can take advantage while being far out from the strike price, even at something that may look that's never going to happen. That is intended. You can sell an option call of Amazon at 5000 and they may buy a call at 5005, which will limit their potential loss. The user will collect a premium for that risk. In this case, the ...


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Options are called "options contracts" because they are literally a contract. OP, regarding the specific scenario you outline ("something to do with an acquisition"), every detail of that scenario would be covered in the contract, in each case, with each company. Thus, the question is the same as asking "What happens if I have a ...


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Yes, your understanding is correct. Strictly speaking, the Black-Scholes model is used to price European options. However, the payoff (price) of European and American options are close enough and can be used as an approximation if no dividends are paid on the underlying, and liquidity cost is close to zero (e.g. in a very low-interest rate scenario). As of ...


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