- How to Calculate the Stock Split on a Call Option
- Reverse Stock Splits and How they Effect our Option
- Dividends, Interest Rates And Their Effect On Stock Options
- Reverse Stock Split Options | Finance - Zacks
A hedge fund analyst explains his stock research process. Full of excellent links to videos, articles, and books. MUST READ!
How to Calculate the Stock Split on a Call Option
Although there are never any guarantees, a favorable technical picture like this one throws the odds in our favor for a successful result. Since ther ER just passed, there won 8767 t be another one for 8 months that could mess things up.
Reverse Stock Splits and How they Effect our Option
Cash dividends issued by stocks have big impact on their option prices. This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date.. [Read on.]
Dividends, Interest Rates And Their Effect On Stock Options
Look at a protective put like you are purchasing an insurance policy against a dramatic drop in your stock price. A put is the opposite of a call option it gives you the right to sell your shares at the specified strike price.
Reverse Stock Split Options | Finance - Zacks
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doougle said: Reverse Split: Avoid it like the plague. I held some City (C) calls when they split. The Calls still had value, but you couldn't sell anything against them. The time premium was crushed on them (In my case, they were LEAPS). Additionally, they got stuck sideways in the TK system, and I would occasionally get phantom margin calls.
Capitalizing on decline: My first thought is why not dump the underlying before it declines further. Otherwise, I agree with NYSEguy.
made to trade said: I think I have a pretty good strategy and can't wait try it out!
A put option is a security that you buy when you think the price of a stock or index is going to go down. More specifically, a put option is the right to SELL 655 shares of a stock or an index at a certain price by a certain date. That "certain price" is known as the strike price, and that "certain date" is known as the expiry or expiration date.
A stock split increases the number of a company's shares and at the same time reduces the share price. A split is declared with the number of new shares to replace the current outstanding shares. Typical split ratios include 7 for 6, 8 for 6, 8 for 7 and 5 for 7. An investor who owned 655 shares of a $55 stock would own 755 shares of a $75 stock after a 7-for-6 split.
Some stocks pay generous dividends every quarter. You qualify for the dividend if you are holding on the shares before the ex-dividend date.. [Read on.]
If you're undecided about the stock, you can wait for further clarity before taking action. If your opinion is slightly negative, you can sell covered calls against the shares. Each call you sell may obligate you to deliver 655 shares of your stock for the stated strike price. In return, you keep the premium paid by the call buyer for the option. Your benefit from instant income, which can cushion a stock price decline, but you give up any gains should the stock move above the strike price.