If you sell a put on a non standard option and it expires out of the money, do you just keep the premium and you are done or are you on the hook for something more. Hello, if the option expires out of the money, ...
Nov 9, 2010 If you sell a non-standard put option spread: For instance, I sold the Nov 20 $7.50 strike price put option and bought the Nov 20 $5.00 strike and collected the premium. My question is do non-standard options expire like standard options? How ...
Hello Susan, When you 'write a covered call' you buy (or already own) 100 shares of stock and sell one call option. The option is IN THE MONEY when the stock price is HIGHER than the strike price of the option The option is OUT ...
Hello, I've come across a non standard option that looks intriguing. It's the Jan 11 45 GMCR. It has a deliverable of 450 shares due to a split back in May. The option is trading at 98.40. What's the risk in selling the call? The ...
Emin, Buying protective puts is a very bad choice in my opinion. That turns your entire portfolio into the equivalent of owning call options. Beta is significant, but the best way to handle that is to choose the index that most resembles your portfolio. You ...
I asked my broker this question today, and he is totally confused. I have a debit spread . I am long ABC March 26 calls, and short ABC February 27 calls. I brought in .58, but the short is now at 2.45 as the stock ...
Sam, Good question, please post it as a comment at the blog: http://blog.mdwoptions.com If you are familiar with the CBOE Buy-Write Index (Covered calls on the S&P 50o0 index), then you should know that they have an equivalent index on writing 2% OTM calls instead ...
i was doing some research on covered calls and came across your article you wrote a couple of years ago. i don't see where there is any down side. even though the profits might be small it appears to me that you will make some ...