Assertion: put's buyer | /r/CapableOf | exercise the option
Facets:
value: before this date
type: TEMPORAL
value: due to price conditions
type: CAUSE
value: in case of index options
type: OTHER
value: to sell the shares
type: PURPOSE
Source sentences:
text: The seller has the corresponding obligation to fulfill the transaction – to sell or buy – if the buyer (owner) "exercises" the option.
text: The buyer of a Put Option can exercise his Option to sell the shares on or before the expiry date in the case of Stock Options and only on the expiry date in case of index Options.
text: It is only worthwhile for the put buyer to exercise their option (and require the put writer/seller to buy the stock from them at the strike price) if the current price of the underlying is below the strike price.
text: That’s because the option writer must respond (by spending money or foregoing profit) if the buyer executes the option.
text: If the stock dropped and the buyer of your put exercised her option, you would have to purchase the stock at the strike price and sell it at the lower market value, setting yourself up for a loss.
text: Barring that outcome, if the buyer exercises his options, you get the stock at a reduced cost basis, and you'll also keep the interest earned while you had the money invested in Treasury Bills.
text: Unlike vanilla options, selling a digital option does not mean the trader is writing an option, which involves the seller or writer being paid a fee for allowing the buyer to exercise the option.
text: The put buyer can exercise the option at the strike price within the specified expiration period.
text: Once the buyer exercises the option, the seller must follow the instructions set by the option.
text: The option seller must sell the stock to the option buyer if the buyer exercises the option.
text: However, if the share price in the market were $175, then the buyer would exercise the option, since $100 would be a bargain compared to the prevailing share price.
text: If the stock declines and the buyer exercises the option, the writer must buy the stock at the strike price.
text: On or before this date, the buyer of the put option must exercise the option.
text: As the put seller, there’s a chance you may be assigned shares if the put buyer exercises the option.
text: In case the Nifty falls below 7600, Put buyer will exercise the option and Richard will start losing money.
text: If the buyer exercises the option, you have to buy the asset at the market price to satisfy the order.
text: You also make money when the strike price is higher than the amount you originally paid, and the buyer exercises the option.
text: For example, if the stock price goes up to $11, the buyer of the call will exercise the option and the investor will sell the shares that he bought at $5 for $11, for a $6 profit, but must then pay out $11 – $7 = $4, making his profit only $2 ($6 − $4).
text: For example, if the stock price goes up to $11, the buyer of the call will exercise the option and the investor will sell the shares that he bought at $5 for $11, for a $6 profit, but must then pay out $11 – $7 = $4, making his profit only $2 ($6 − $4).
text: The seller, called the writer in options terms, is obligated to sell or buy if the buyer exercises the option.
text: When the value of a stock rises above the strike price of a call option before it expires, the buyer could exercise the option and purchase the shares.
text: In this example, if you sell 3 contracts, and the price is above the strike price at expiration (ITM), 300 of your shares will be called away (delivered if the buyer exercises the option), but you will still have 200 shares remaining.
text: The seller of an option is planning to either buy or sell the goods at the strike price anyway or betting that the buyer won’t exercise the option due to price conditions that are unfavorable for the buyer.
text: You can assume that X is always positive here; otherwise, the buyer wouldn’t exercise the option, leaving P equal to 0, meaning that the buyer lost only the cost of buying the option in the first place.
text: If the buyer exercises his option, the writer will buy the stock at the strike price.
text: When the buyer exercises his option to buy the stock from call option, the seller is obligated to sell the stock, at the price agreed by the parties earlier.
text: If the buyer exercised his option, you would be assigned and have the futures put to you at 100 despite the fact it was trading fully 20 points lower in the market.
text: The seller or writer of the call option is obligated to sell shares to the buyer if the buyer exercises their option or if the option expires in the money.