Monthly Archives: November 2009

Profit Opportunity

By admin | Published: November 28, 2009
With options, profit opportunities might exist no matter whether one believes the market is going to rise or fall. Moreover, there are a variety of ways in which those opportunities can be taken, by buying and/or writing options. In simple terms, a call holder and a put writer will expect to benefit from a rising [...]
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underlying market price

By admin | Published: November 24, 2009
The underlying stock price is normally the most significant factor affecting the price of an option. As mentioned earlier, in-the-money options enable holders to buy or sell the underlying shares at a better price than the prevailing market price. They therefore cost more than the equivalent at-the money and out-of-the-money options because there is more [...]
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Underlying Stock strike price

By admin | Published: November 20, 2009
Every option is issued on an underlying instrument which can be one of a wide range of products – for example, a stock, a stock index, a commodity futures contract, a currency and etc. In this case, the underlying instruments are exchange-traded stocks. Your broker can inform you which stocks have options traded on them.The [...]
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