Cover To buy back as a closing transaction an option that was initially written.Cash Settlement The process by which the terms of an option contract are fulfilled through the payment or receipt in dollars of the amount by which the option is in-the-money as opposed to delivering or receiving the underlying stock.Define call: to speak in a loud voice — call in a sentence. to demand presentation of (as a bond or option) for redemption (see redeem 5b).A American-style Exercise An option contract that may be exercised at any time between the date of purchase and the expiration date.Expiration time The time of day by which all exercise notices must be received on the expiration date.Expected Return A rather complex mathematical analysis involving statistical distribution of stock prices, it is the return which an investor might expect to make on an investment if he were to make exactly the same investment many times throughout history.Cycle The expiration dates applicable to various classes of options.
See detailed explanations and examples on how and when to use the Long Call options trading strategy.Learn how to use covered calls to generate recurring monthly income.A binary option, sometimes called a digital option, is a type of option in which the trader takes a yes or no position on the price.
Expiration cycle An expiration cycle relates to the dates on which options on a particular underlying security expire.The rest of this page is devoted to understanding what call options are.Get detailed strategy tips, setup guides and examples for trading long call options.
Option legal definition of option - Legal Dictionary
Call Put Option tips blog is aim to provide trading strategies for Nifty, Bank Nifty, NSE BSE stock options in simplified form through Technical analysis.
Option Pricing Applications in Equity Valuation - NYU SternWhen purchasing something is not quite possible (or desired) the option for many individuals and companies comes down to leasing or renting.Depository Trust Corporation (DTC) A corporation that will hold securities for member institutions.Exercise price The price at which the option holder may buy or sell the underlying security, as defined in the terms of his option contract.
How to Trade Stock Options - Basics of Call & Put OptionsDiscover the most important factors to your options trading success.
Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD).Definition of call option: An option contract that gives the holder the right to buy a certain quantity (usually 100 shares) of an underlying security.Equity Options Options on shares of an individual common stock.In addition, a short call is covered if the account is also long another call on the same security, with a striking price equal to or less than the striking price of the short call.Calls and Puts Trading Tip: Before we get too far along in talking about call options and trading.A designation applied to some types of orders, meaning the order remains in effect until it is either filled or canceled. For call options,.A credit transaction is one in which the net sale proceeds are larger than the net buy proceeds (cost), thereby bringing money into the account.
Automatic Exercise A protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder.Learn for free about math, art, computer programming, economics, physics, chemistry, biology, medicine, finance, history, and more.Call An Option contract that gives the holder the right to buy the underlying security at a specified price for a certain, fixed period of time.
The neutral ratio is determined by dividing the delta of the purchased option by the delta of the written option.Conversion Arbitrage A riskless transaction in which the arbitrageur buys the underlying security, buys a put, and sells a call.It should be noted that while the holder of the call option has a right to demand sale of asset from the seller,.The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions.For stock options expiring on or after February 15, 2015, this date is the third Friday of the expiration month.
Discretion Freedom given to the floor broker by an investor to use his judgment regarding the execution of an order.Option Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date.