Stock options quizlet
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Upgrade to remove ads. Chicago board options exchange american stock exchange pacific stock exchange Philadelphia stock exchange largest options market is the Chicago Board Options Exchange. Amex is large too.
Florida Life and Health Practice Test Flashcards | Quizlet
NYSE Euronext ownes AMEX and Pacific arca. Subsidiary of the CBOE Issues contracts, guarantees the contracts, and acts as a clearing house for all listed options trades. Expire on the Saturday following the third Friday of each month. Actual expiration time is Once a contract is issued, it trades until its expiration. An option contract can always be issued for the current month spot and for the next month.
If it's May 1, contracts can be issued for May spot and June next month. Cycle 1 - Jan, Apr, Jul, Oct Cycle 2 - Feb May Aug Nov Cycle 3 - Mar Jun Sept Dec. Actual Max Contract Life.
Technical Max Contract life. Cycle 1 - Once Jan contracts expire, Oct contracts can be opened. The last time to trade is 4 pm EST. The OCC limits the number of positions that any individual can take, or group of individuals. The limit depends on the trade volume of the underlying stock, higher the trading, the higher the limit.
Equity (stock) Options Flashcards | Quizlet
Limit is applied to each side of the market Exercise limits - in addition to position limits, there are limits on the number of contracts that can be exercised within any 5 business day 1 working week period. No adjustments for cash dividends - option contracts are not adjusted for cash dividends. When a stock goes ex dividend, the strike price is left alone 2: Before 1 ABC Jan 60 call After 2 Abc Jan 30 Calls Fractional split - no change to contract, but deliverable is adjusted -i.
Covered Call writing position.
Long the underlying stock 2 Long a call at the same strike price or lower that expires in the same month or after the short call. If the long call expires, the remaining short call is naked until expiration.
Long an escrow receipt for the stock -stock is held in bank vault - not with broker 4. Covered Position Writing positions. Short the underlying stock position -creating a covered put writer 2. Long Term Stock Options LEAPs. New contracts are long term equity options with a longer life than the 9 mo.
Series Options Flashcards | Quizlet
LEAPs have a 30 month expiration. They are issued each May. Equity Option Financial Listings.
Quoted daily in newspapers 2. Option type - calls and puts 3. Option class - All contracts of one type of an underlying issue are termed a class of options. All Delta Airline calls, or all Delta Airline puts 4.