Option carrying costs are the interest expense on a debit balance created by establishing a position. Typcially these can be fairly low fees depending on your broker. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What makes us different is that we depend on ...…
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What are stock, ETF, futures options? Well, they are all a contract that is struck between a seller and a buyer for a financial security. The seller grants the buyer the option to buy or sell the shares at the agreed price and date. If the option is to buy shares then you purchase a call ...…
The option bid price is the best price at which an option buyer is willing to buy an option or stock. This is usually the price you have to buy the option at initially. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What makes ...…
Options trading assignment is the receipt of an exercise notice by an option writer that obligates him to sell or purchase the stock at the specified strike price. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What makes us different is that we ...…
Option closing purchase is a transaction in which the purchaser’s intention is to reduce or eliminate a short position in a given series of options. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What makes us different is that we depend on historical price ...…
Sometimes the OCC will automatically exercise stock options. This is a protection procedure whereby they attempt to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What ...…
Cash based options settlement is referring to an option or future that is settled in cash when exercised or assigned. No physical entity, either stock or commodity, is received or delivered. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What makes us different ...…
Calendar spread trading is an option strategy in which a short-term option is sold and a longer-term option is bought, both having the same striking price. Either puts or calls may be used. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What makes ...…
Options accumulation for trading purposes is when stocks start moving sideways after a significant drop as investors start accumulating shares. This works in tandem with options trading as well. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What makes us different is that ...…
Options trading arbitrage is the process in which traders simultaneously buy and sell the same or equivalent securities for a risk-less profit. This is very rare to see in any free market system. At the Option Writer we have made it our mission to offer the most successful and cost-effective service online today. What makes ...…
A capped option is an option with an established profit cap or cap price. The cap price is equal to the option’s strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option. At the Option Writer we have made it our mission to ...…
Trading bull spreads and calls spreads can be very profitable. Each option strategy achieves its maximum potential if the underlying security rises and has its maximum risk if the security falls. Either puts or calls may be used for the strategy. At the Option Writer we have made it our mission to offer the most successful and ...…
