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standard versus nonstandard options
What is the difference between nonstandard and standard options? A non-standard option is one that exists after a corporate action - usually a merger, takeover, spin-off etc. The old options must be adjusted to reflect those changes. Thus, when you exercise the option, you no ...
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What is the difference between buying a put vs selling a call?
Mark, I am new to options trading and I am in the process of reading your book. But I had a question on the fundamental difference between buying a put and selling a call. As I understand it, essentially they are both declaring a downwards ...
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How Does a Market Maker Protect him\herself?
I have always been curious about what a market maker does to protect against a situation where many calls or puts are sold by the market maker and the market moves or is moving against the position of the writer of those options (say, the ...
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Non Standardized Options
I am considering buying Rio Tinto at $151.70/share and selling the NS option at $25 per contract. The NS contract states $2280.61 cash in lieu of shares, 100 shares of RTP. Does this mean I sell the shares at $150 per share plus I have ...
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How do I find out the particulars of a NS option.
I am looking at a NS option and trying to understand what the rights and responsiblities are. it is the CTIC Jan 2.5 Put (l-10) (+KGXMZ) it says it is just 10 shares. I am thinking about selling the put and anticipating the option to ...
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Options Charts
Hi Mark, Where can one see a chart of price & volume & open interest for a particular option over time? I'm trying to track how an option price changes over time in relation to the underlying price and also - how open interest changes ...
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terminology
Hi Mark, Does "buying" a call or put spread equate to a "debit" spread? And does "selling" a call or put spread equate a "credit" spread? Thanks - Debra Hi Debra, Yes and yes. When you buy a vertical (both options expire on same date) ...
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What is the return?
Hi Mark. If you put on a credit spread, eg. buy a ABC July $570 call for $1.60, and sell a ABC July $560 call for $2.63, and both expire worthless, how do you calculate your return in percentage terms (what number goes into the ...
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video
Thanks Deb, I now have learned that some people could see it, and others could not. Thanks for letting me know Best, Mark Mark D. Wolfinger The Rookie's Guide to Options:The Beginner's Handbook of Trading Equity Options blog: http://blog.mdwoptions.com/options_for_rookies website: http://www.mdwoptions.com
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ns calls
hi By mistake I bought 50 NS calls for BAC july 09. strike price is 15.00 at $ 1.15 now the stock is 13.78 today now it is $ .15 is it worthless or how it will work . can you give advise please thanks ...
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"Diagonals"
Hi Mark, I'm just wondering why some spreads are called "diagonal"? I just read about a strategy where you buy back a call you previously sold and at the same time sell a different call further out in expiry and at a higher strike price. ...
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Married Puts
Would you kindly point me to a good beginner's resource or primer for trading married puts? I would like to go long on some limited partnerships (they pay decent dividends) and marry them with corresponding puts that protect my downside. Some gas pipeline and storage ...
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Use of Options to secure the Dividend
I was trying to find a strategy to earn the dividend of the stock without taking the risk of the fall in the stock price. Below is the trade: Buy 100 MO at $16.50 = $1650 debit Sell 1 January 2010 $5 strike call for ...
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your book
Hi Mark, Good morning Debra, I'm interested in buying a copy of your book "Options for Rookies" [T he Rookie's Guide to Options] which was highly recommended by Preet. I know you're working on a new edition, was wondering when it would be available, and ...
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Question
Hi Mark, My question is simple. I have been a buy and hold type investor for many years and recently learned about writing covered calls. Several people who have attempted to recruit me for a stock/options training program have indicated that it is not uncommon ...
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