Assertion: call's option | /r/HasProperty | exercised
Facets:
value: no longer
type: TEMPORAL
value: automatically
type: MANNER
value: before
type: TEMPORAL
value: (purchase price)
type: OTHER
value: /expire
type: MANNER
value: before the settlement date
type: TEMPORAL
value: during expiration
type: TEMPORAL
value: typically
type: DEGREE
value: early
type: TEMPORAL
Source sentences:
text: For the writer (seller) of a call option, it represents an obligation to sell the underlying security at the strike price if the option is exercised.
text: The seller must deliver the stock if the option is exercised.
text: Conversely, when you sell a call option, you must sell shares of the underlying stock at the specified price when the option is exercised.
text: And for a put option, the option writer is obligated to buy the underlying asset from the option holder if the option is exercised.
text: American options can be exercised any time before the expiration date of the option, while European options can only be exercised on the expiration date or the exercise date.
text: For instance, if the stock of company ABC frequently moves a few dollars throughout each trading day, the call option costs more as it is expected the option will be exercised.
text: For instance, if the stock of company ABC frequently moves a few dollars throughout each trading day, the call option costs more as it is expected the option will be exercised.
text: If the option is exercised, you’ll simply deliver those shares to the option holder.
text: If the option is exercised, you’ll have to buy those shares on the open market to cover your obligation, no matter how high the price may be at that time.
text: A seller must fulfill the contract, delivering the underlying asset if the option is exercised.
text: This gives rise to the term "covered" call because you are covered against unlimited losses in the event that the option goes in the money and is exercised.
text: If the option is in the money, expect the option to be exercised.
text: Some similar aspects are there in the two investments like both acts as an agreement between the buyer and seller in the financial market, where time works as an essence of the contract, i.e. the option needs to be exercised before the time expires.
text: If the stock closes above the strike price at expiration, the option is considered to be in the money and will be exercised.
text: 70 Not like a stock trade, this is the “strike price,” which is the price at which stock is traded if an option is exercised.
text: The premium is a cash fee paid on the day the option is sold and is the seller's money to keep, regardless of whether the option is exercised or not.
text: Naked put options that are exercised create a long position in the seller's account, purchased with available cash.
text: If the trader does not own the underlying stock, the seller will have to acquire the stock, then sell the stock to the option buyer to satisfy the obligation if the option is exercised.
text: In this scenario, the trader has an option that will be exercised.
text: This is the price at which the owner of options can buy the underlying security when the option is exercised.
text: This is the price at which the owner of options can buy the underlying security when the option is exercised.
text: The strike price determines whether an option should be exercised.
text: The short side of a call option is required to deliver shares of the underlying stock if the option is exercised.
text: If you already have the stock, then it's generally not a problem to deliver it if the option is exercised, which is referred to as a covered call.
text: When an option is exercised, the cost to the buyer of the asset acquired is the strike price plus the premium, if any.
text: When the option expiration date passes without the option being exercised, the option expires and the buyer would forfeit the premium to the seller.
text: the expiration date, or expiry, which is the last date the option can be exercised
text: If the seller does not own the stock when the option is exercised, he is obligated to purchase the stock from the market at the then market price.
text: It is more dangerous, as the option writer can later be forced to buy the stock at the then-current market price, then sell it immediately to the option owner at the low strike price (if the naked option is ever exercised).
text: However, if both options are exercised, the total premium will be more than the premium on a single option.
text: The caveat is that there are two premiums paid and a higher cost if the second option is exercised.
text: However, there are times when options are typically exercised early.
text: S/he is obligated to deliver (or sell) 100 shares to the option buyer if the option is exercised.
text: If the option is exercised, the investor who sells the interest rate call option will make a net payment to the option holder.
text: The amount of the payment when the option is exercised is the present value of the difference between the market rate on the settlement date and the strike rate multiplied by the notional principal amount specified in the option contract.
text: Although in-the-money options are often set up to be exercised automatically, you as the option owner can always specify other conditions of sale.
text: To calculate the profit of an option including broker's fees, simply use the formulas above and subtract any additional broker's fees you paid to buy or write the option and any you will pay if the option is exercised.
text: There may be provisions regarding when any vested options must be exercised.)
text: Non-qualified stock options: These are taxed as ordinary income in the year the options are exercised.
text: The taxable amount is the difference between the price of the stock when the options are exercised and the grant price (strike price) of the options.
text: Any option that's in the money by one cent or more on the expiration date is automatically exercised unless the option owner specifically requests his/her broker not to exercise.
text: Yes, while in the money long options are automatically exercised only during expiration, as long as you are holding in the money short options, you are in "danger" of an assignment anytime before expiration, it doesn't happen only during expiration.
text: If the rate is lower than 2.0000 on December 31 (say 1.9000), meaning that the dollar is stronger and the pound is weaker, then the option is exercised, allowing the owner to sell GBP at 2.0000 and immediately buy it back in the spot market at 1.9000, making a profit of (2.0000 GBPUSD − 1.9000 GBPUSD) × 1,000,000 GBP = 100,000 USD in the process.
text: Likewise, the seller (writer) of a call option is obligated to sell the stock at the strike price if the option is exercised.
text: An option that can only be exercised on the settlement date is called a European option while an American option can be exercised on or before the settlement date.
text: The buying or selling right only takes effect when the option is exercised, which can happen on the expiration date (European options), or at any time up until the expiration date (US options).
text: An option buyer will pay the premium for the rights the option gives, and the seller collects the premium and must deliver the stock if the option is exercised.
text: An option should only be exercised if it is in the money by at least as much as the fees associated with the underlying transaction (e.g. the fee for subsequently selling an underlying which has been physically delivered).
text: If the option is exercised, you still keep the premium but are obligated to buy or sell the underlying stock if assigned.
text: An American option can be exercised anytime up to the date of expiration.
text: An exotic option can vary in terms of how the payoff is determined and when the option can be exercised.
text: Bermuda options provide investors with more control over when the option is exercised.
text: If the options are exercised, you must sell your shares for exactly $550 per share.
text: If the options are exercised, you must sell your shares for exactly $550 per share.
text: To put this another way, you will retain ownership up to $1.00, but if the price ends up above $1.00, the options will be exercised.
text: The put yields a positive return only if the underlying price falls below the strike when the option is exercised.
text: Strike (Price): This column shows the price at which a call buyer can purchase the security if the option is exercised.
text: In the case of a put option, it’s the price at which the option buyer can sell the underlying security should the option be exercised.
text: On the flip side, an option writer will be assigned to produce the underlying security at the strike price if an option he or she sells (writes) is exercised.
text: This works well if you choose to sell naked options because it won't require you to have a large amount of margin available to buy the stock if the options are exercised.
text: If the stock price decreases to $420, the put options may be exercised, and the put options may be assigned by the exchange.
text: If the option is exercised you are obligated to deliver the agreed upon number of shares of stock in exchange for the agreed upon price per share, regardless of the market value of the stock.
text: You earn a premium for agreeing to sell your stock for a set price if the option is exercised.
text: If the price of the stock increases and the option is exercised, you get the strike price plus the premium.
text: In-the-money options are automatically exercised if they are one cent ($0.01) in the money.
text: And not all option holders believe the same thing, causing less than 100% of all 50-strike options to be exercised.
text: However, the IRS treats option expense differently, and only allows their tax deductibility at the time the options are exercised/expire and the true cost is known.
text: When the options are exercised/expire, their actual cost becomes known and the precise tax deduction allowed by the IRS can then be determined.
text: In particular, we'll assume that you sell a call option that expires three months from now, has a specified strike price of $60 per share that the buyer will pay for each share if the option is exercised, and has a premium of $1 per share covering the 100 shares that you own.
text: This is comparable to selling (writing) an option — the option writer gets a premium up front, but has a downside if the option is exercised.
text: If a third party is nominated to purchase then the PAMDA requirements must again be complied with when the option is exercised.
text: This is the price at which the owner of options can buy the underlying security when the option is exercised.
text: This is the price at which the owner of options can buy the underlying security when the option is exercised.
text: In this case, most brokers would automatically sell the shares the moment the options are exercised and post to your account the difference less commissions.
text: Put-call parity applies only to European options, which can only be exercised on the expiration date, and not American options, which can be exercised before.
text: You, as the option seller, have no say about whether the option is exercised or not.
text: You, as the option seller, have no say about whether the option is exercised or not.
text: The date the option is exercised (Exercise Date)
text: The Purchase Price of the asset if the option is exercised (Purchase Price)
text: When you write (short by using Sell To Open orders) call options , you are obligated to sell the underlying stock to the holder of those call options if the options are exercised .
text: Similarly, when you write put options, you obligated under the put options contracts to buy the underlying stock from the holder of those put options if the options are exercised.
text: The holder (long position) of a stock option controls when the option will be exercised and the investor with a short option position has no control over when they will be required to fulfill the obligation.
text: The key difference between American and European options relates to when the options can be exercised:
text: If the first exercise date arrives and the 'inner' option's market price is below the agreed strike the first option will be exercised (European style), giving the holder a further option at final maturity.
text: A barrier option involves a mechanism where if a 'limit price' is crossed by the underlying, the option either can be exercised or can no longer be exercised.
text: A barrier option involves a mechanism where if a 'limit price' is crossed by the underlying, the option either can be exercised or can no longer be exercised.
text: A double barrier option involves a mechanism where if either of two 'limit prices' is crossed by the underlying, the option either can be exercised or can no longer be exercised.
text: A double barrier option involves a mechanism where if either of two 'limit prices' is crossed by the underlying, the option either can be exercised or can no longer be exercised.
text: A cumulative Parisian barrier option involves a mechanism, in which if the total amount of time the underlying asset value has spent above or below a 'limit price' exceeds a certain threshold, then the option can be exercised or can no longer be exercised.
text: A cumulative Parisian barrier option involves a mechanism, in which if the total amount of time the underlying asset value has spent above or below a 'limit price' exceeds a certain threshold, then the option can be exercised or can no longer be exercised.
text: A standard Parisian barrier option involves a mechanism, in which if the maximum amount of time the underlying asset value has spent consecutively above or below a 'limit price' exceeds a certain threshold, the option can be exercised or can no longer be exercised.
text: A standard Parisian barrier option involves a mechanism, in which if the maximum amount of time the underlying asset value has spent consecutively above or below a 'limit price' exceeds a certain threshold, the option can be exercised or can no longer be exercised.
text: It is clear that there is no standard form document required to create an option agreement, although an option agreement will commonly have a heavily modified 'standard form' contract attached to it which will constitute the contract between the parties if the option is exercised.