Options that an holder may exercise at any time until the expiry date.
When the holder exercise his option, the option writer receive a notice that obliges him to sell or buy the shares at the stipulated strike price.
When the price of the underlying equity equals the strike price of the option.
Purchase of an option (call or put) with a higher strike price and the sale of an option with a lower strike price with the same expiry date.
The point a which the investors makes no profit.
Purchase of an option with a lower strke price and simultaneous sale of an option with a higher strike and same expiry date.
An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock at a specified price within a specified time. Calls are purchased by investors who expect a price increase.
Simultaneous purchase of a put option and sale of a call option having the same expiry date but different strike price.
Simultaneous purchase or sale of call and put of the same stock with different expiry date and strike prices.
When the writer of a call option holds an equivalent quantity of the underlying stock for each option contract he sells.
Option which the holder can only exercise on the expiry date.
The holder of shares purchased ex dividend is not entitled to an upcoming already-declared dividend, but is entitled to future dividends.
The process by which the holder exercise his right to buy or sell the underlying according to the terms of the option contract.
The date at which an option contract expires. This means that the option can’t be exercised after that date.
When the strike price of a call (or put) option is lower (or higher) than the price of the underlying stock.
The difference between the current market value of the underlying interest and the strike price of an option. In-the-money is a term used when the intrinsic value is positive.
Last trading day
The last day on which a futures or option contract may be traded.
Means to increase the value of an investment which does not involves borrowing but offering the prospect of high return.
An amount of the securities an investor has to deposit with his broker to guarantee the purchase of the underlying securities when he sells an option.
Selling or writing a call or a put without holding an equivalent quantity of the underlying stock.
It indicates the number of contracts on a particular stock that are still outstanding. the greater the open interest, the greater the liquidity in the market, therfore the easier it is to liquidate the position.
Price the buyer has to pay the seller for the option.
Advanced Strategic Planning Module. OptionPointer’s OptionOptimizer module automatically generates strategic approaches based on your projections and preferences.
OptionPointer offers another key feature for those who understand the importance of closely monitoring their investment activities.
When the strike price of a call (or put) option is higher (or lower) than the price of the underlying stock.
A collection of investments held by an institution or a private individual
An option which gives the holder the right, but not the obligation, to sell a fixed amount of a certain stock at a specified price within a specified time. Puts are purchased by those who think a stock may go down in price.
Purchase (or sale) of a call and a put with the same expiry date and strike price.
Purchase or sale of call and put options on the same stock, with same expiry months and different strike prices.
Price at which an investor holding an option can buy or sell the underlying stock.
Portion of the premium that represents the remaining time until the expiry of an option contract. The time value is equal to the differene between the intinsic value and the option premium.
A statistical measure of changes in price over a period of time.
The seller of an option contract.