Assertion: call's option | /r/CapableOf | expire worthless
Facets:
value: basically
type: DEGREE
value: " then
type: TEMPORAL
value: expiry date
type: TEMPORAL
value: above 3,000
type: OTHER
value: on expiration day
type: TEMPORAL
value: most of the time
type: TEMPORAL
value: time decay
type: TEMPORAL
value: below strike price
type: OTHER
value: often
type: DEGREE
Source sentences:
text: The investor collects the option premium and hopes the option expires worthless (below strike price).
text: In other words, the owner of the option (also known as "long a call") does not have to exercise the option and buy the stock--if buying the stock at the strike price is unprofitable, the owner of the call can just let the option expire worthless.
text: If the price of the underlying security does not increase beyond the strike price prior to expiration, then it will not be profitable for the option buyer to exercise the option, and the option will expire worthless or “out-of-the-money”.
text: And below $20 per share, the option expires worthless and the call buyer loses the entire investment.
text: For every price below the strike price of $20, the option expires completely worthless, and the call seller gets to keep the cash premium of $200.
text: If you sell a put, instead of paying a premium, you receive the premium and if the option expires worthless you make a profit.
text: The option will expire worthless if Apple's shares are changing hands for less than $100 a month later.
text: If the underlying's price is above the strike price they may do nothing because the option may expire worthless and they can keep the whole premium.
text: They are expecting the option to expire worthless and, therefore, keep the premium.
text: If the July expiration arrives and the stock is trading at or below $40 per share, it is very likely that the option will expire worthless and you will keep the premium.
text: The seller writes the option in the hopes that the options will expire worthless and they will make a profit from the premium.
text: If the holder does not exercise his right before the expiration date, then the option expires and becomes worthless.
text: Similar to a call option, if a put option holder does not exercise his right before the expiration date, then the option expires worthless.
text: Benefits of writing an option include receiving an immediate premium, keeping the premium if the option expires worthless, time decay and flexibility.
text: As a result, the option expires worthless, meaning Sarah keeps the $1,700 premium paid by Tom.
text: If the stock fails to meet the strike price before the expiration date, the option expires and becomes worthless.
text: In this case, she decides not to purchase the stock because she believes the option is likely to expire worthless and she will keep the entire premium.
text: Options may expire worthless and you can lose your entire investment, whereas if you own the stock it will usually still be worth something.
text: If the stock is worth less than $150, the options will expire worthless, and the trader would lose the entire amount spent to buy the options, also known as the premium.
text: Should the stock trade above $150, the option would expire worthless allowing the seller of the put to keep all of the premium.
text: Should the stock not rise above $170, the options would expire worthless, and the trader would lose the entire premium.
text: So, the goal for the writer is to have the option expire worthless.
text: The goal of the trade is for the option to expire worthless, in which case the investor keeps the entire premium.
text: If the underlying stock stays below the strike price at contract expiration, then the option expires worthless.
text: If the stock price is below the strike price at the expiration date, then you keep your premium as the option expires worthless.
text: First and foremost, options often expire worthless, resulting in a total loss of whatever the buyer paid for the option.
text: For example, if you sell a call option on a stock, you're generally betting that the price will go down and the option will expire worthless.
text: Now, in that case, that it does close anywhere below the strike price, you don't have to do anything to close out the trade, the option expires worthless, you keep all the premium, and the best part is you save the commissions of having to reverse the trade.
text: However, these options expire worthless most of the time.
text: If an option has no value at expiration, and it has not been offset or exercised, the option expires worthless and no further action is required.
text: An option will expire worthless only on expiration day, and only if the option is at- or out-of-the-money (OTM) –
text: The option writer collects the initial premium and then hopes the option will expire worthless.
text: Now if YHOO stays basically the same and hovers around $40 for the next few weeks, then the option will be "at-the-money" and will eventually expire worthless.
text: That's where your call option comes in handy since you do not have the obligation to buy these shares at that price - you simply do nothing, and let the option expire worthless.
text: Maximum gain is achieved when the option is held through expiration and the option expires worthless.
text: Most options seem to expire worthless; therefore, the trader may have more winning trades than losers.
text: If X stock is below 22.50 at the May expiration, this option will expire worthless and we will keep the $100 premium for each option sold.
text: If the option is "out of the money" then the option just expires worthless and drops off of your account
text: The lower costs are often due to the additional features that increase the chances of the option expiring worthless.
text: Buyers of options can either exercise their right to buy the underlying security or they can let the option expire worthless.
text: A synthetic option is less affected by the problem of options expiring worthless; in fact, adverse statistics can work in a synthetic's favor because volatility, decay and strike price play a less important role in its ultimate outcome.
text: But if the stock's market price is above the option's strike price at the end of expiration day, the option expires worthless, and the owner's loss is limited to the premium (fee) paid for it (the writer's profit).
text: The potential upside is the premium received when selling the option: if the stock price is above the strike price at expiration, the option seller keeps the premium, and the option expires worthless.
text: You will often hear people talk about options expiring worthless.
text: The trader will then receive the net credit of entering the trade when the options all expire worthless.
text: If the option expired worthless, write "expired" in the column.
text: Obviously, if you have a call option and the Index closes below the strike price on the expiration date then you would not exercise it and that option would just expire worthless.
text: Likewise, if you have a put option on the Index and the Index closes above the strike price on the expiration date then you would not exercise it and that option would just expire worthless.
text: If the stock price is not above the $985 strike price by the time the option expires, the option will expire worthless and I get to keep the $1,020 you gave to me initially.
text: If the stock price had dropped to $40 or below at expiration, all the options involved will expire worthless.
text: The two options that you bought would expire worthless since you wouldn't exercise the option to buy at $20 when the price is trading at $10 in the market.
text: In short, you would earn the initial credit of $200 and both options would expire worthless.
text: If the option is "out of the money" then the option just expires worthless and will be removed from your account.
text: The main objective of writing naked calls is to collect the premiums when the options expire worthless.
text: Note that this is a credit spread: ie that we receive money for a trade and, if we are correct and the stock does fall, weget to keep this if both options expire worthless.
text: This means that both options will expire worthless and we can keep the initial $250 credit we received when we opened the trade.
text: At or above $3,000 the option would expire worthless.
text: The option expires worthless.
text: The option expires worthless (the stock price is above the strike price), and your profit is the cash collected.
text: The Money (OTM) Options would expire worthless.
text: expiry date, the option will expire worthless.
text: If the option expires worthless, then the option seller is relieved of his/her obligations.
text: If the instrument is higher than the strike price at expiration, the option will expire worthless – and the trader keeps the entire premium he collected upfront.
text: Most deep out-of-the-money options will expire as worthless, and they are considered long shots.
text: This means that if IBM is below $110 on expiration day, the option will expire worthless and you get to keep the whole $200.
text: When underlying price ends up below the strike at expiration, the option expires worthless and your total result from the long call trade is a loss equal to the initial price (in this case $2.88 per share, or $288 for a standard option contract representing 100 shares).
text: If an option is out-of-the-money on the expiration date, the option has no value and basically expires worthless and ceases to exist.
text: If the option expires worthless, the credit is yours to keep.
text: You get to keep this credit if the option expires worthless.
text: The most profit you can make with a naked put is if the option expires worthless (i.e. XYZ is above $30 on expiration day).