Talk:Option (finance)

message: /Archive 1
The archive contains the talk page from Option, from before this article was moved to Option (finance).  I moved it because I'm moving Option (disambiguation) to Option, and that talk page was in the way, not to mention it didn't match the article it was attached to. -GTBacchus(talk) 17:32, 3 February 2007 (UTC)
thread_title: Old discussion

message: Whoaaa!  The discussion page has disappeared, I can't find it!  Perhaps just as well.
Anyway, I think this is a good resolution of the discussion over financial options, and how the reader can better understand now the subject of all options, and where to look.  Certainly I'm happy with it and I think all reasonable participants should be too.  So thanks to whoever did this.   JohnClarknew 20:07, 21 November 2006 (UTC)
replies: text: NP, John. BTW, the old discussion page can be found here: Talk:Option. I've set up a redirect on what was the old option page. Here's a trick: type Option in the Wiki search box and hit go. At the top, click on the link that says (Redirected from Option). That prevents the redirect and let's you get back to the original page. Ronnotel 20:18, 21 November 2006 (UTC)
thread_title: Option page Redirect

message: in the section "Option naming conventions", at leat one example is needed. Jackzhp 17:35, 17 April 2007 (UTC)
thread_title:  Naming convention examples 

message: Can someone please add some explanation for the calendar spread, strip, & strap? Jackzhp 15:19, 18 April 2007 (UTC)
thread_title:  other types 

message: this article talks about specific options instruments, but what about Real Options, or talking about Debt and Equity in an options framework? Suicup 18:56, 26 September 2007 (UTC)
replies: text: I believe the intent of this article is to describe financial options. It began as simply Option, but was renamed some time ago because of exactly the issue you describe. I don't think it's possible to find consensus on what options are to be able to describe them succinctly in one page. However, there are a number links to these other types of options. Clearly, there is already a page on Real Options. There is also a page on Equity derivatives and Bond options. Can you be more specific on what you'd like to see? Ronnotel 19:03, 26 September 2007 (UTC)
thread_title:  not broad enough 

message: Isn't it a bit odd that this article is over 4000 words and doesn't mention the tax implications anywhere? calr (talk)  —Preceding comment was added at 19:47, 20 November 2007 (UTC)
replies: text: Hmm - interesting point. Which of the notable elements of option taxation are common across the various tax regimes and instrument classes? I'm by no means an expert - but just in the U.S. there are probably dozens if not hundreds of taxation rules, most of which are specific to U.S. tax law. I think a section on taxation would be useful, but it would need to be written for a global audience. Depending on what sort of material there is, would it make sense to break this out into a separate article? Ronnotel (talk) 20:08, 20 November 2007 (UTC)
thread_title:  Tax 

message: This is a really nicely done article, scholarly, accurate and neutral. I like it a lot. I think that it could use more inline citations, and also that some of the language may be simplified for the general reader. You may want to add a section on covered call writing, even though there is a separate article. Covered calls are the primary way retail investors engage in options trading. The comments above re tax implications are also valid. In general, good job!--Samiharris 19:19, 2 December 2007 (UTC)
replies: text: The additions to the article since the above dealt with my concerns, esp. on the covered call writing, so I have made this a good article. --Samiharris 19:32, 3 December 2007 (UTC)
thread_title:  Good article review 

message: As the article is now GA, we should be more careful about adding major new sections. I'd like to have some discussion on the purpose of a section titled Uses. It also needs to be adequately referenced as per WP:RS. Ronnotel (talk) 23:22, 30 January 2008 (UTC)
thread_title: Uses

message: At which date is expiration date often fixed?
Some options expires in the morning, some expires in the afternoon.
* – the option expires at the market close of the last trading day
* – the option expires at the market open of the last trading day
why this? Jackzhp (talk) 14:02, 31 March 2008 (UTC)
thread_title: expiration

message: vbv  —Preceding unsigned comment added by 122.169.53.87 (talk) 10:45, 6 May 2008 (UTC)
replies: text: Sorry? Zain Ebrahim (talk) 11:03, 6 May 2008 (UTC)
thread_title:  future  option 

message: For exchange traded options, they have tickers. How are thoese tickers being chosen? I think that we should explain it in the article. Jackzhp (talk) 03:59, 14 May 2008 (UTC)
replies: text: It turns out we have an entire article on that, option symbol, so I linked it in the article. I'm not sure that topic justifies more explanation in this article, but a link to it is good. Thanks for the suggestion. - Taxman Talk 13:58, 14 May 2008 (UTC)
thread_title: option ticker

message: This is for the long calls, short calls, long puts, short puts  part.
:Moved thread to the bottom. Zain Ebrahim (talk) 19:06, 3 June 2008 (UTC)
thread_title: Graphs do not match up horizontally with with the text =

message: The risk section is very complicated and difficult to understand.  Wikipedia is used by more than just people with advance knowledge of mathematics, an attempt to make this information more non-expert friendly would be greatly appreciated. Be so empty without me (talk) 03:51, 28 June 2008 (UTC)
thread_title: Risks Section

message: The word "premium" should be (shortly) explained, perhaps elsewhere.132.66.40.82 (talk) 12:43, 16 September 2008 (UTC)
thread_title:  Premium 

message: This is my first contribution so I hope I'm doing the right thing.
The article is excellent but I feel a simple example would clarify some of the details. For example a call option with an expiry date of ddmmyy at a price of $$$. Current price is $$$ premium = $$$ and so on.--Azzol99 (talk) 04:39, 18 November 2008 (UTC)
thread_title:  Example 

message: User:205.232.183.3, I'm not sure I see the benfit of the links you have been restoring to this article. IMHO, the article seems better off without the link cruft. Can you please explain why you think these links should remain? Ronnotel (talk) 00:00, 8 January 2009 (UTC)
replies: text: After reviewing these links, I find them unlikely to offer the reader much more insight. There are lots of links on the web that talk about options and these are in no way special. If you want to propose some potential links that you think would help the page that would be great. But please get consensus here before adding them to the article. Ronnotel (talk) 18:03, 8 January 2009 (UTC)
thread_title:  External links 

message: The introduction was deemed inaccessible to those unfamiliar with the context. I feel that the intro is now eases readers more gently into the discussion. Also, the last two intro paragraphs were not necessary for an introduction. They provided information beyond the scope of introduction.
I also added a section that gives a quick overview of the factors that influence option prices. I felt that jumping into valuation models without first discussing valuation would throw unseasoned readers through a loop.  —Preceding unsigned comment added by Rainpat (talk • contribs) 20:33, 3 March 2009 (UTC)
replies: text: Please understand that in no way am I disparaging your efforts. However, I was concerned that the edits introduced some loss of precision. For instance, it is more accurate to define an option as a contract rather than a privilege. Is there something in particular that you think is unaccessible? Ronnotel (talk) 21:20, 3 March 2009 (UTC)
thread_title:  Edit

message: Why is there no history section for the use of options or have options always been a part of investment markets?  Are there different types of options?  Did they all emerge at the same time on the markets?  Did options become available to different national markets at different intervals? Are options offered in all investment markets around the world? What is the context for these investment offerings?  How do hedge funds fit into this and when did they emerge as a consequence? I could keep going, but I think I have made my point... Stevenmitchell (talk) 12:48, 19 July 2009 (UTC)
replies: text: I agree! It would be nice if a history section was added. Ulner (talk) 14:58, 19 July 2009 (UTC)
thread_title:  Where is the History Section for this Article? 

message: I come to this table with a link to an online program that displays the prices of the fundamental world's commodities, their options, the marks, a scale and a graph.  My intention is to list it on this page for a week for your evaluation and comment.  There is an explanation on my user page with the code to transfer the scale to a spreadsheet.
Alesander (talk) 05:19, 22 October 2010 (UTC)
replies: text: thanks for the link, Alesander, but I'm unclear on how the tool you describe would meet the notability standard. In order to link to such a tool, it should be referenced and documented by reliable sources. That way it will be clear to all that the link is appropriate. Since I cannot find any reliable sources that reference this tool, I think it may be premature to add this link to the page. Ronnotel (talk) 13:11, 22 October 2010 (UTC)
thread_title:  Options scale 

message: the idea is a simple summary of how they work; for me , this really works, and took me a long time to find; it is in the current article but sort of buried at the bottom, at the very least, this should come before the math stuff, which is of interest to very few people in a general audience
Options come in two varieties, calls and puts, and you can buy or sell either type. 
If you buy a call, you have the right (but not the obligation) to buy the underlying instrument at the strike price on or before the expiration date. 
If you buy a put, you have the right (but not the obligation) to sell the underlying instrument on or before expiration. 
In either case, as the option holder, you also have the right to sell the option to another buyer during its term or to let it expire worthless.
The situation is different if you write, or "sell to open", an option. Selling to open a short option position obligates you, the writer, to fulfill your side of the contract if the holder wishes to exercise. \
If you sell a call as an opening transaction, you're obligated to sell the underlying interest at the strike price, if you're assigned. 
If you sell a put as an opening transaction, you're obligated to buy the underlying interest, if assigned. 
As a writer, you have no control over whether or not a contract is exercised, and you need to recognize that exercise is always possible at any time until the expiration date.
This is actually a little wordy, but to me, makes a lot more sense, in a short paragraph, then the current version, where this info is sort of diffuse and at the end of the article (move it up - way more people need to read this then the math stuff)  —Preceding unsigned comment added by 75.67.134.245 (talk) 02:33, 11 November 2010 (UTC)
replies: text: All of this is already in the lead section of the article. Yworo (talk) 03:24, 11 November 2010 (UTC)
replies: text:  NO IT ISNT it is buried
to see it done right, vist http://www.theoptionsguide.com/put-option.aspx 
I have a PhD in molecular biology, and I know how hard it is to simplify; I feel your pain, but the current article is dense, with way way way to much info sorry, thats my two cents
 (of course, an objective measure would be to ask 100 people to read the aritcle and answer some questions on puts and calls, but I see no way to do that)  — Preceding unsigned comment added by 24.91.51.31 (talk) 03:46, 23 January 2012 (UTC)
thread_title: please add

message: In the 1st para "Both are commonly used in and by the old traded" is unclear. Please address. Rgbutler (talk) 12:02, 20 June 2017 (UTC)
thread_title:  Unclear in Intro 

message: I included information that people engaged in buying and selling of options are known as "option traders" which is similar to "stock traders". I wonder, what is more accurate to say: "Opton trader" or "Options trader"? It seems that "Option trader" is more accurate since we have "stock trader" not "stocks trader". Do you guys agree?  — Preceding unsigned comment added by 174.7.172.44 (talk) 22:58, 19 November 2017 (UTC)
thread_title:  Option Traders 

message: I propose merging option naming convention into this article. The option naming convention article is very short; in my opinion, it should not be a separate article. DA1312 (talk) 14:12, 6 May 2020 (UTC)
replies: text: It may not be a good idea because it clutters the option page and is only used by a subset of people booking specific transactions.Limit-theorem (talk) 19:00, 6 May 2020 (UTC)
thread_title:  Merger Proposal 

message: has once again removed my addition of a Curlie template with a link to the directory's Resources category on financial options. The explanation is that it is a link spam, which doesn't seem right to me. Instead of simply re-adding the template, I would like to ask what Kbrose and other editors think about the issue. Also, upon the review of the Curlie's Resources category, I've noticed that it is rather poor and that they have a much more appropriate category (Education and Training). In my opinion, it would contribute greatly to the article by providing some further guidance for learning and analysis in options without bloating up the EL section with potentially spammy links. In fact, having a single Curlie template is the exact opposite of including "a lengthy or comprehensive list of external links related to each topic." Enivid (talk) 11:10, 17 November 2020 (UTC)
replies: text: Sites like this are simply not appropriate for linking in WP and WP:EL makes this clear, it seems, and it seems obvious. For the same reason, links to open wikis, calculators, and other tools are usually excluded from EL sections. WP is not a web directory or listing service. If it were, links to Google search results would be appropriate just the same, but they aren't. kbrose (talk) 16:43, 17 November 2020 (UTC)
replies: text: Sorry, but I don't see how WP:EL makes it clear. I would believe that Curlie template (and previously DMOZ's) was created with regard of WP:EL policies. On the contrary, including such a template helps WP to avoid being a web directory or listing service, because it consolidates link-worthy resources that have already been curated. In this regard, linking to Google search results would be vastly different. Applying Curlie template is more akin to having a link to a relevant IMDB page in every movie article on WP. Enivid (talk) 11:01, 18 November 2020 (UTC)
thread_title:  Curlie in External Links