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27 Cards in this Set
- Front
- Back
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call option gives a right
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to buy a stock at a strike price
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if a call options price rise you can:
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exercice option
close transaction by selling it hold it |
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you buy at
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ASK
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you cell at
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Bid
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what permits you to select an option at a certain price
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limit
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formula for benefit of call option
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Stock Price- strike price- option price
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an option is more expensive before or after earning statements?
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Before
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for call, a lower strike price means....
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a higher price
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call in the money definition and cheaper or more expensive?
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higher than the original price
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naked call
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seling calls
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naked call consequences
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if the buyer execute you sell at strike and buy at price. if he does not you keep your money
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own stock and write call
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good when not moving or to protect your stock
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short stock and buy call
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good to protect your short
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a put option gives the right to..... stock at a price
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sell
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when out the money there is no
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intrinsic value
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longer expiration....
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higher price
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lower strike price
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lower put price
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put options can be used as....
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insurance
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big difference with shorting
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loss are limited
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own stock and buy a put option is like
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having an insurance
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deductible
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the price for which you are not secured
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what is doing a collar?
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Weiting an option and add it to a put
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when stock price grows, call..... and put.....
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call increase and put decrease
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when time to expiration is more important, call..... and put.....
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increase increase
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when the strike price grows
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the call option price decrease and the put option price increase
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when dividend grow
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call option decrease and put option increase
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when volatility grows
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call and put increase
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