future trading strategy

Jun 28th, 2015
Studypool Tutor
Academy of Art University
Price: $25 USD

Tutor description

Buying a put option - This is a graphical interpretation of the payoffs and profits generated by a put option as seen by the buyer of the option. A lower stock price means a higher profit. Eventually, the price of the underlying security will be low enough to fully compensate for the price of the option.

Word Count: 620
Showing Page: 1/23
CandlestickForumOptionTrainingCopywrited @ June 2009Definitions1Calls andPutsBuying AssetsLong2Selling AssetsShortBuying Callsand PutsOptions3Selling Callsand PutsObligationsBuying Calls 1.Right to buy a stock 2.A fixed price 3.During a specific Time period4Buying Puts 1.Right to sell a stock 2.A fixed price 3.During a specific timeperiod.Selling Calls or PutsWritingBecomesan Obligation5Underlying AssetStockBondCurrencyCommodityExercise Price or Strike PriceThe Price of the underlying Asset inwhich the option is being Bought/Sold.Stock prices usually at $5 or $2.50increments6Expiration dateThe date in which the option terminatesFor Stocks, the third Friday of eachmonthExerciseExercising an option is acting upon theoption to take the stock.It is associated with long positions7AssignAn assignment is when an investor isnotified that they are having stock put tothem.Associated with the Put side of a tradePremium TheActual price of the option8In the Money = stock price below strike priceAt the money = stock price at strike pricelevelOut of the money = Stock Price above thestrike price levelIntrinsic ValueThe actual Price of the stock minus theStrike priceExample Stock price is trading a$53.00,the strike price is $50.00, the Intrinsicvalue of an option is $3.009Time ValueThe difference in the ac

Review from student

Studypool Student
" all I can say is wow very fast work, great work thanks "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1821 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors