New answers tagged options
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will my brokerage account receive some stocks after someone exercises put options that I wrote?
In options it's just "selling". "Short selling" is more commonly used to describe borrowing securities and selling them, so you owe (are "short") the securities. With ...
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will my brokerage account receive some stocks after someone exercises put options that I wrote?
Yes, yes, yes, yes, and yes.
When you write / short sell an option, you are assumed to know what you are doing, and what the potential consequences are.
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How far from the strike price is an option contract being exercised?
The broker themselves aren't really assigning anything. It's whoever bought the option that gets to decide whether assign it; the broker simply is a conduit of the assignment. The buyer of the option ...
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Can I take profit in option trading if
Option basics: You paid 80 for the right to buy the stock at 2100. If you can sell the option for 85 (which means the bid is 85 - the last traded price is irrelevant), then yes, you could sell your ...
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Aren't options priced asymmetrically for Inverse and Leveraged ETFs, for the same underlying index?
First, note that ordinary unleveraged ETFs and stocks also have this behavior -- "bounded below, unbounded above" -- and their options obey put-call parity (by an arbitrage argument). In ...
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Are options on popular ETF considered section 1256 contracts?
Most advice is that option on equity ETFs such as SPY and QQQ do not qualify as 1256 contracts. Two things against them: 1) they track indices but are not indices and 2) they do not settline in cash. ...
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