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Stock market Optional Cash PurchaseOptions Analysis

Options - A buyer can never lose more than the premium.
Option sellers can only gain the premium.
Options (equity) settle on the Saturday following the third Friday of the month.

 


Class of Options: A term referring to all options of the same security type - either calls or puts - covering the same underlying security.
Coincidence: In Gann theory, a projected reversal point.

Options on Futures Contracts
What are known as put and call options are being traded on a growing number of futures contracts.

Options Trading Plan - Mapping Out A Successful Future
Do you know the way to San Jose? The writer of this song seemed to be a little confused about where he was going.

Options Learning Center
Options can be a powerful and versatile tool in your trading arsenal.
From conservative income generation to highly leveraged speculation, you'll find an options strategy that meets your needs here.

Options allow you to make a bet on the direction of an underlying investment such as a stock, bond or market index without actually buying that investment.

Options Market
Core Market Knowledge for Options Traders
Introduction to Options Trading ...

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It also trades a wide variety of equity and index options. American Style Option A contract that can be exercised at any point before expiration. Most equity options fall into this category.

Unfortunately the main use of this (to find and exploit over or underpriced options) is now less useful than it was, as everyone has access to the same equation, and barring machine failure, will generally price their options correctly.

Future options, including the tools offer you updated solutions in gold, soybean, cotton, bond and commodity options, as well as financial solutions. Stock indexing is another option coming alive for stockholders around the world.

Options of this type are generally considered to be investment opportunities that tend to carry a moderate amount of risk.

Options that refer to the average rate of the underlying currency that existed during the life of the option.

Options on futures are contracts giving the holder the right to buy or sell a specified futures contract at an agreed-upon price before a specific expiration date.

Options on physicals
Interest rate options written on fixed-income financial instruments, as opposed to those written on interest rate futures contracts.

Options & Futures
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Options may also be sold short, in which case the seller of a call option has the obligation of delivering the shares of stock and the seller of a put option has the obligation of purchasing shares of stock.

Put Options give the holder the right to sell the underlying stock at a fixed pre-determined price within a certain, fixed period of time.

Other OptionsforOptions Sections
Ask: The price at which you can buy a stock or option. Stock and option quotes are in Bid x Ask format. So an option quote of 1.00 x 1.05 means you could buy the option for 1.05, or sell it for 1.

Index Options Put/Call Ratio
This indicator is calculated by dividing the weekly volume of S&P 100 call options by the weekly volume of S&P 100 put options. Big call volume appears at market tops and big put volume at bottoms.

Book: options pricing
The first Sourcebook to Explain Every Important Option Pricing Formula. When pricing options in today's fast-action markets, experience and intuition are not longer enough.

Index Options
Call options and put options on indexes of stocks designed to reflect and fluctuate with market conditions.

Naked options (not as appealing as it sounds)
Now let's look briefly at the result of selling naked calls. In this scenario, the call writer simply sells the call and does not own any of the underlying stock to cover the short call.

Binary Options
A binary "call" (or "step up") is like a standard European call option except that the pay off at expiry is fixed at one unit of the counter currency, if the call expires in the money.
Next Forex Glossary Term: Black-Scholes Model ...

What Are Options?
There are many people who choose not to trade futures contracts because they feel the potential gains do not outweigh the potential losses. For those people, options are the investment vehicle of choice.

Although options and futures are by necessity closely related, they are not interchangeable. Each has advantages and disadvantages and can be used separately or in combination to achieve a variety of risk management and investment objectives.
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Class of Options
Option contracts of the same type (call or put), style and underlying security.
Clearinghouse
An institution established separately from the exchanges to ensure timely payment and delivery of securities.

Condor - An options strategy similar to a butterfly spread, but the two middle options have different strike prices within the range established by the other two options.

What are Stock Options?
You have a bakery and you need to have eggs supplied to you in the next 3 months. You are aware that the cold season will produce fewer eggs in 3 months.

The Chicago Board Options Exchange (CBOE) was created by the Chicago Board of Trade in 1973. The CBOE essentially defined for the first time standard, listed stock options and established fair and orderly markets in stock option trading.

At least this is true if you are trading options in liquid, (i.e., active) markets. In some inactive option markets, there are inefficiencies.

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Opportunities In Options
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Options are derivative securities that give the holder the right to buy (call) or sell (Puts and Calls) a specified amount of the underlying security at a specific "strike price" and within a specified timeframe.

Options
Gives the buyer the right, but not the obligation, to buy or sell stock at a set price on or before a given date. Investors, not companies, issue options.

Options strategy that combines a bear spread and a bull spread, involving four options and three exercise prices.

Options give their owners the right to buy or sell a stock within a set period of time, at the end of which the option contract expires. In the United States, all stock options expire on the third Friday of their expiration months.
fairly valued ...

Options
Learn all about collars, straddles, strangles and a host of other options trading strategies.
Mutual Funds ...

Options - These are tradable contracts giving the right, but not obligation, to buy or sell commodities, securities or currencies at a future date and at a prearranged price.

OPTIONS LEARNING CENTER
Ebooks
Identifying Obstacles of a Winning Trading Psychology (PDF format) ...

Options - A right to buy or sell a fixed amount of a given stock at a specified price within a limited period of time. If the right is not exercised the option expires and the buyer forfeits the money.

Options that can be exercised any time during their lifetime. These are also known as open options.
Annual report ...

Options Glossary
Home Going Naked Time Is Money Technical Analysis Glossary Option Spread Calculator
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Options
All Topics
Please select a term from the left to see the corresponding definition.

Options on futures contracts have added a new dimension to futures trading. Like futures, options provide price protection against adverse price moves.
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Beginners Corner : FUTURES 101 ...

Options and warrants are converted at pre-defined rates. As the stock price increases, their value increases dollar-for-dollar.

Options
1: A contract giving an investor a right to buy (call) or sell (put) a fixed amount of shares (usually 100 shares) of a given stock (or indexes and commodities) at a specified price within a limited time period (usually three, six, ...

Options Trading
Options : Perception and Deception:
Position Dissection, Risk Analysis, and Defensive Trading Strategies
Charles M. Cottle
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Options: A financial option provides the option buyer with the right, but not the obligation, to buy or sell a specified financial product at the strike or exercise price.

Options issued by companies to raise equity capital. Upon exercise, the company will issue new shares.
Compounding ...

Options Trading
technical analysis for QQQQ options trading based on the NASDAQ 100 charts.

Options
Derivative financial products. The buyer of an option is speculating on a certain price performance trend into the future. He is holding an option right. The issuer is obliged to perform a predefined action if requested by the holder.

Options: a derivative investment, giving the holder an option to buy or sell a specified quantity of an underlying asset at a particular date, at a price that is agreed when the contract is executed.

optionsXpress
Options, Stocks & Futures
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Options contract multiple
A constant, set at $100, which when multiplied by the cash index value gives the dollar value of the stock index underlying an option.

Options - An agreement that allows the holder to have the option to buy/sell a specific security at a certain price within a certain time. Two types of options - call and put. A call is the right to buy while a put is the right to sell.

Options Clearing Corporation (OCC)-The issuer of all listed options on all exchanges.

Options Contract
An options contract represents one hundred underlying shares in the company. Options are quoted on a per share basis.
Originator ...

Options: There are four basic option trades:Long call - you have the right but not obligation to buy an asset at an agreed price on a future dateShort call - if the long call holder exercises the option to buy, ...

Options contract
A contract that, in exchange for the option price, gives the option buyer the right, but not the obligation, to buy (or sell) a financial asset at the exercise price from (or to) the option seller within a specified time period, ...

Options: Convey the right, but not the obligation, to buy or sell an underlying security or commodity during a specific time for a specific price.

See also: Option, Trading, Stock, Trade, Price