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Underlying

Stock market  Uncovered put options  Underlying Instrument
04/21/2014

Underlying
By Chuck Kowalski
Definition: Underlying refers to the commodity or futures contract upon which a given option is based. The price movement of the underlying dictates the price of a option contract.


Underlying Instrument
The instrument, such as shares and commodities on which a futures or options contract is based.
Related Terms...
Ordinary Shares
Commodity (commodities)
Futures Contract
Option
Derivatives ...

Underlying Interest
The specific security, commodity, index or financial instrument that an option or futures contract is traded.
News On Underlying Interest ...

Underlying
In finance, an underlying is an investment from which a derivative security is derived. Underlyings are invariably more common and more widely heard of than the securities derived from them.

Antonyms:
underlying
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Underlying Asset
What is the definition of Underlying Asset?
The underlying asset is the item being traded and exchanged between dealers and traders on a financial exchange.

Underlying
It is a financial instrument which must be delivered in completion of an option or futures contract.
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Underlying debt
Definition:
Municipal bonds issued by government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility. ...

Underlying - covered warrant
The asset on which the covered warrant is based and derives its value. The underlying may be a security (such as shares), a share index (e.g. FTSE 100), a commodity or a currency.

Underlying Commodity: The cash commodity underlying a futures contract. Also, the commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised.

Underlying Stock - The underlying stock is the stock for which you are purchasing the option.

Underlying Asset - In order to write an options trading contract, you certainly have to include the commodities that contract is buying. Corn futures, gold and silver are all examples of commodities that can be underlying assets.

UNDERLYING ASSET
The underlying asset that gives value to a futures contract could be shares, share market indices, commodities, currency, interest rates, weather etc.
LOT SIZE ...

Underlying Asset - The stock, commodity, futures contract, or cash index to be delivered in the event an option is exercised.

Underlying
1. In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised.

Underlying Stock Dividends
Dividends increase the attractiveness of holding stock rather than buying calls. This is because call buyers are not entitled to the dividends until they actually own the stock.

Underlying Instrument
A class of options is all the puts and calls on a particular underlying instrument. The something that an option gives a person the right to buy or sell is the underlying instrument.

Underlying asset, underlying instrument: The instrument (shares, bonds, stock index.) that can be purchased (in case of call) or sold (in case of a put) by a buyer who exercises his option.

UNDERLYING SECURITY Options: the security subject to being purchased or sold upon exercise of an option contract. For example, IBM stock is the underlying security to IBM options.

Underlying Security
The security subject to being purchased or sold upon exercise of the option contract.

underlying security - the stock, bond, index, or other financial instrument upon which a derivative such as an option is based. It is the underlying security that is subject to being bought or sold upon exercise of the option.

Underlying Fund Expenses - You will also indirectly pay the fees and expenses imposed by the mutual funds that are the underlying investment options for your variable annuity.

Underlying
The "something" that the parties agree to exchange in a derivative contract.
Undiversifiable risk ...

Underlying trend is still up in all time frames other than intraday.
Intraday target for 23rd February is 5476 on the downside and 5536 on the upside.
Medium term targets of 5700-6400 still in place.

Underlying Security: The security upon which a derivative (option, index, futures contract) or other security is based. Eg, an ASA option is based upon the price of ASA stock. The S&P 500 futures index is based upon the S&P 500 stock index.

Underlying Instrument
may sound musical, but refers to the stock, security, or other financial thing that is the basis of the value of a financial derivative.

Underlying Security - The security which one has the right to buy or sell via the terms of a listed option contract.

Underlying
Financial instrument that underlies an option, future, warrant or other instrument.
Underlying index
The index that a tracker follows ...

Underlying - The security on which options are being bought or sold.
Underlying Security - The security on which options are being bought or sold.

Underlying Commodity: The commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised. Also, the cash commodity underlying a futures contract.

Underlying liquidity: The liquidity in the underlying basket of the ETF. This liquidity is not always visible on the stock exchange, but market makers can facilitate large investments into ETFs if there is sufficient underlying liquidity.

Underlying Instrument: A trading instrument subject to purchase upon exercise.
Undervalued: Refers to a security selling below the value the market value analysts believe it is worth, or below its liquidation value.

Underlying contract
You must consider the characteristics of the underlying contract. The chart below shows the average daily volume of the e-mini S&P: ...

Other Underlying Assets
In addition to credit risk and currency, the value of OTC derivatives can be based on assets like commodities, bonds and shares of stocks.

Underlying Structure
First, the parent company establishes a wholly-owned special purpose subsidiary (a grantor trust), whose sole purpose is to issue the securities. The holding company then acquires all of the special purpose trust's common stock.

Underlying: Close price of MSFT at current date, 53.39$.
In table 2, there are the prices on Dec.

Underlying Behavior
The creation of the pattern reflects a period of time when bulls and bears are battling to gain control of the stock. The pattern occurs after the bulls have been charging and driving the stock price appreciably higher.

Underlying
What supports the security or instrument that parties agree to exchange in a derivative contract.
Underlying asset
The security or property or loan agreement that an option gives the option holder the right to buy or to sell.

Underlying stock
The stock to be delivered in the event an option is exercised.
Underwriter ...

Underlying
Derivatives are based on an underlying, or underlying asset, which may a bond, currency, index, raw material, interest, etc.
Underperformance
Describes an investment's return below that of the predefined comparative index.

Underlying Futures Contract: The specific futures contract that is bought or sold by exercising an option.

The underlying idea is that investors require a rate of return from their resources - i.e. equity - under the control of the firm's management, compensating them for their opportunity cost and accounting for the level of risk resulting.

The underlying elements that the economy of the subject is studied from Forex fundamental analysis.

The underlying component of fiscal policy is the government's budget, which determines how much it will spend on various goods and services. The amount of the budget is usually tied to tax revenues and other sources of income for the government.

The underlying assets or instruments which are traded in the cash market.
Actualize
The underlying assets or instruments that are traded in the cash market.

The underlying asset is most commonly a financial security (e.g. shares or bonds), a commodity (e.g. a fixed quantity of a metal) or linked to a financial index.

The underlying forces behind the Elliott Wave Theory are of building up and tearing down. The basic concepts of the Elliott Wave Theory are listed below.

The underlying point behind all the model construction is that of finding a value that arbitrage will enforce. Arbitrage is always a self-terminating activity -- it brings prices to a level at which it can no longer occur.

The underlying indexes for CME Hurricane futures and options on futures will be calculated by Carvill, a leading independent reinsurance intermediary in specialty reinsurance that tracks and calculates hurricane activity.

The underlying asset traded and the time to expiration are a couple of big components to the equation. Normally, a market that is relatively less volatile and an expiration time that is longer usually means a lower percentage payout.

Long underlying stock/future
Short OTM call option
Long OTM put option
Risk / Reward ...

The (underlying) EBITDA margin is calculated by dividing EBITDA (before special items) by sales
Economic cycle ...

But the underlying logic of that criticism, and Buffett’s philosophy as well as the nature of trend following says that now is the time.

Are the underlying problems still there? The market has not been re-directed and this will probably creat another bubble that will burst. I say enforce naked short-selling and let the market be free and hopefully more legal.

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Wednesday, April 25th

  • 7:00am EUR ECB President Draghi said that, "Looking forward, in an environment of modest growth in the euro area and well-anchored inflation expectations, underlying price ...

    If the underlying source of risk is an exchange rate, the price of gold or silver, a share price, or an equity index, then the "square root of three" rule for the volatility may apply. For underlying oil price risk that rule may not work so well.

    At-the-money: An option whose strike price is equal to the market value of the underlying futures contract. Can also refer to an order to buy a futures contract at the current bid-ask price (see Market order).

    CallAn option that gives the right to buy the underlying futures contract. call date A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond for a specified call price.

    Cash Market A place where people buy and sell the instrument underlying a futures contract, such as a securities exchange.

    Exercise strike price : The price at which the underlying currency will b... Exotic : A less broadly traded currency.
    See all the definitions of the terms starting with the letter E.
    F ...

    See also: See also: Market, Stock, Trading, Option, Options

    Stock market  Uncovered put options  Underlying Instrument
    04/21/2014

 
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