Options

A Long-term Equity AnticiPation Security, or "LEAP", is essentially an option with a much longer term than traditional stock or index options. Like options, a stock-related LEAP may be a ... [full story]

When a stock splits, call and put options are adjusted accordingly. In almost every case the Options Clearing Corporation (OCC) has provided rules and procedures so options investors are "made ... [full story]

A covered put is a stock put option that is written (i.e., created and sold) by a person who also is short (i.e., has borrowed and sold) a sufficient number ... [full story]

A covered call is a stock call option that is written (i.e., created and sold) by a person who also owns a sufficient number of shares of the stock to ... [full story]

The price (value) of an option premium is determined competitively by open outcry auction on the trading floor of the CBOT. The premium is affected by the influx of buy ... [full story]

One may be a buyer or seller of call or put options for a variety of reasons. A call option buyer, for example, is bullish. That is, he or ... [full story]

There are several important terms the would-be user of options on futures should understand. They include: call option: Gives the buyer the right, but not the obligation, to buy ... [full story]

Options traders rarely exercise the option and buy (or sell) the underlying security. Instead, they buy back the option (if they originally wrote a put) or sell the option (if ... [full story]

The Wall Street Journal might list an IBM Oct 90 Call at $2.00. Translation: this is a call option. The company associated with it is IBM. (See also the price ... [full story]

An option is a contract between a buyer and a seller. The option is connected to something, such as a listed stock, an exchange index, futures contracts, or real estate. ... [full story]