Call option - Finance Records
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Topic: Call option


  
 Call option - Wikipedia, the free encyclopedia
The profit would be $10 minus the fee paid for the option, $5, for a net profit of $5.
The initial transaction in this context (buying/selling a call option) is not the supplying of a physical or financial asset (the underlying instrument).
Call options can be purchased on many financial instruments other than stock in a corporation - options can be purchased on interest rates, for example (see interest rate cap) - as well as on physical assets such as gold or crude oil.
http://en.wikipedia.org/wiki/Call_option   (930 words)

  
 Option - Wikipedia, the free encyclopedia
However, employee stock options use is being curbed thanks in part to a decision by the Financial Accounting Standards Board (FASB) requiring that stock option grants are recorded on the income statement as an expense.
Additional to the intrinsic value an option has a time value, which decreases the closer the option is to its expiry date.
Previously, options granted with fair market value exercise prices were not considered to have a cost to the company.
http://en.wikipedia.org/wiki/Option   (2311 words)

  
 NOVA Online Trillion Dollar Bet Site Map
Options are usually sold in sets of 100 (which would allow you to buy or sell 100 shares of the underlying stock at a certain price for the duration of the option).
This is the cost to purchase one European-type call option of a certain stock.
A stock option is a contract that gives you the right—but not the obligation—to buy or sell a stock at a pre-specified price (the exercise price) for a pre-specified time, that is, until the option "expires." If the option gives you the right to buy shares of a stock, it is a call option.
http://www.pbs.org/wgbh/nova/stockmarket/formulaoptions.html   (668 words)

  
 Call Options
When you purchase a call option you will need to know 3 things: The price at which you want to purchase the stock at 9strike price), which month you want the option to expire in (expiration month), and how much you are going to pay for the option (the premium).
This means that the option seller must buy the stock at its current price of 29.00 and sell it at the call's lower strike price of 25.00 to the option holder, thereby incurring a loss on the trade (current price - strike price = loss).
A call option is at-the-money (ATM) if its strike price is the same as (or close to) the current price of the underlying stock.
http://www.writingputs.com/Calls.htm   (1163 words)

  
 WWWFinance - Option Contracts
For example, for an equity option, the underlying asset is the common stock.
This is the bond minus a call on the value of the bond.
Hence, common stock is a call option on the value of the firm, with maturity date the date the bond matures and the exercise price is the par value of the bond.
http://www.duke.edu/~charvey/Classes/ba350_1997/options/options.htm   (9439 words)

  
 Call Option
If a option trader owns the underlying stock or commodity when he sells (writes) a call option contract it is known as a writing a covered call.
For instance, if T-bond futures were purchased at 80-00 and a call option with an 80 strike price was sold for 2-00, T-bond futures could decline to the 78-00 level before there would be a net loss in the position (excluding, of course, margin and commission requirements).
However, the seller of the option is generally required to post margin.
http://www.makestockmarketprofits.com/calloption.html   (510 words)

  
 Call Option - Glossary - Quicken Loans
The option may be exercised due to breach of the terms of the loan or at the discretion of the lender.
A provision of a note that allows the lender to require repayment of the loan in full before the end of the loan term.
http://www.quickenloans.com/help/mortgage-glossary/27/Call-Option.html   (81 words)

  
 Invest FAQ:Derivatives:Stock Option Covered Calls
The call writer might have shares in his or her safe deposit box, or in another broker's account, or in that same broker's cash account -- this makes the investor covered, but not as far as the broker is concerned.
The writer of the call option receives a premium and agrees to deliver shares (possibly from his or her holdings, but this is not required) if the option is called.
A call is also considered covered if the call writer has an escrow receipt for the stock, owns a call on the same stock with a lower strike price (a spread), or has cash equal to the market value of the stock.
http://invest-faq.com/articles/deriv-option-covered-call.html   (792 words)

  
 Call Option
The buyer of an equity call option has purchased the right to buy 100 shares of the underlying stock at the stated exercise price.
The seller of a call option has the obligation to sell the underlying security should the buyer exercise his option to buy.
Thus, the buyer of one QQQ April 30 call option has the right to purchase 100 shares of QQQ at $30 up until April expiration.
http://www.trader-soft.com/option-trading/option-basics/call-option.html   (143 words)

  
 Invest FAQ:Derivatives:Stock Option Basics
If you instead wish to sell (sell=write) that call option, you instruct your broker that you wish to write 1 Call IBM Oct 90s, and the very next day your account will be credited with $200 less commission.
For the last word on options, contact The Options Clearing Corporation (CCC) at 1-800-OPTIONS and request their free booklet "Characteristics and Risks of Listed Options." This 94-page publications will give you all the details about options on equity securities, index options, debt options, foreign currency options, principal risks of options positions, and much more.
The option in this example expires on the Saturday following the third Friday of October in the year it was purchased.
http://invest-faq.com/articles/deriv-option-basics.html   (1570 words)

  
 Call Option
A currency call option is also used to hedge foreign currency payables; by buying call options at the appropriate strike price, one is able to lock-in a rate.
A currency call option is bought for speculative purposes when one expects the underlying currency to appreciate in value.
It is right, but not an obligation, to buy a currency at a specified price called the strike price, or exercise price, for a specified period of time for which the purchaser pays an option premium to the seller or writer of the call.
http://www.bsu.edu/classes/rrathina/course/unit5_7.htm   (112 words)

  
 Call
If you sell a call option, you think that either the price will not increase or you think the price will decrease.
As a speculator, if you buy a call option you think the price of the underlying security is going to increase.
The break even would be the short sale price less the option premium.
http://www.speculativebubble.com/terms/call.shtml   (193 words)

  
 call option, put option
Call options function similarly to the type of options that companies typically grant employees as part of incentive packages, but unlike stock options, which must usually be held and exercised only by the employee, a call option can be traded on the open market.
Owners of put options hope that the value falls, because they can then buy the commodity at the low price and sell to the pre-existing buyer at the higher predetermined price.
If the price never reaches an agreeable level for the owner of the put, they can allow the option to expire and not purchase the commodity, and all the owner loses is what they paid for the put.
http://www.north-pacific.ca/Glossary/call_option__put_option.html   (280 words)

  
 Buying a call option
One of the greatest benefits of trading options on shares, as compared to trading in the actual underlying shares, is the leverage (or "gearing") that options provide, allowing you to gain exposure to greater amounts of shares for less initial cash outlay than would be possible when trading in the underlying shares.
The value of an option is derived from a number of factors including the relationship between the exercise price and the share price, market volatility and time to expiry.
A call option would enable you to profit in a rising market without actually buying the underlying shares.
http://www.liffe.com/liffeinvestor/options/buy_call.htm   (434 words)

  
 what is a call option and other options related information
of a call (put) option is the contractual price at which the underlier will be purchased (sold) in the event that the option is exercised.
Stock option analysis focused on Covered Call Option strategies and LEAP option data designed for hedging investing and trading risk in the stock market through high yield screens, graphs, charts and loss...
You profit on a call when the underlying asset increases in price.
http://www.nethorde.com/options/what-is-a-call-option.html   (367 words)

  
 Commodity Call Option
A call option specifies the amount and price of a commodity that can be purchased prior to a future date.
If the market price is higher than specified in a call option, the buyer has the right to purchase the commodity at the lower price.
A call options has an initial purchase fee.
http://www.starseleven.com/1_call_option_2.html   (178 words)

  
 Untitled Document
Options are a popular investment medium, offering an opportunity to hedge positions in other securities, to speculate on stocks with relatively little investment, and to capitalize on changes in the market value of options contracts themselves through a variety of options strategies.
Net Financing Cost : Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield.
The employee is given an option to purchase its shares at a certain price (at or below the market price at the time the option is granted) for a specified period of years.
http://www.regulation-s.com/glossarry_all.php   (13041 words)

  
 call option Definition
An option contract that gives the holder the right to buy a certain quantity (usually 100 shares) of an underlying security from the writer of the option, at a specified price (the strike price) up to a specified date (the expiration date).
Learn about call and put options, the components of an options contract, how to value and price options, and what the advantages and disadvantages of options to help you decide if they are the right investment for you.
Stocks, bonds and mutual funds are the most popular asset classes and therefore get most of the market's attention, but there are other important investment opportunities every investor should know about as well, including options, futures, and currency.
http://www.investorwords.com/680/call_option.html   (233 words)

  
 Call Option
Call options usually increase in value as the value of the underlying instrument increases.
A Call Option is an option to buy a stock at a specific price on or before a certain date.
When you buy a Call option, the price you pay for it, called the option premium, secures your right to buy that certain stock at a specified price, called the strike price.
http://www.aboutadvice.com/options/call-option.php   (242 words)

  
 Ultimate Option Strategies -- Stock Option Trading Advice
Second, if the stock crosses the strike price (putting it "in the money") before your option expires, you not only win your bet but your percentage gains will be more than had you bought a more expensive option.
Our award winning software is easy to use, time tested, profitable and easy on the budget.
While we do not recommend the services of any specific broker, here's a list of option brokers have worked successfully with option traders for years.
http://www.ultimateoptionstrategies.com   (735 words)

  
 EyeNets.com - call option
Call option picks based on technical analysis and risk estimates at Option Smart, your stock market resource.
Stock option picks are based on technical analysis, risk estimates, and industry trends.
Stock option picks based on techncial analysis and risk estimates.
http://www.aleksys.com/toplinks/call_option.cfm   (283 words)

  
 Covered Call Option Success Tips
Writing a covered call on stocks priced at less than $40 per share creates a higher percentage covered call option premium yield than writing a covered call on higher-priced stocks.
How to increase your yield on stock options, and covered call options.
Instead of selling stocks outright, consider writing a covered call.
http://www.tradejuice.com/TFB/cover-call-tips-db.htm   (254 words)

  
 Option Find - Covered Calls - Hedging and Options
NOTE: "Covered call if NOT called out" returns are based upon option bid price and never includes a potential loss or profit from being called out.
Be certain to independently verify any theoretical return first with your broker as certain equities or options, due to special circumstances, may not be accurately presented.
The Power Financial Group has a series of products that serves the stock and option markets.
http://www.optionfind.com   (367 words)

  
 Use The Option Profiteer Instruction Manual And Sell Covered Call Options to Safely Boost Your Retirement Investment ...
The Option Profiteer Instruction Manual combines this obscure knowledge of Covered Call Options with my own investing system that I've developed through the process of trial and error, and puts it into a simple, plain-language, step-by-step PLAN for earning higher returns.
The Option Profiteer Instruction Manual will walk you through the simple process of safely magnifying your profits, showing you how to skim the cream from the stock market that others miss.
The Covered Call Calculator takes your input, calculates the return on your transaction (before you even buy the stock), and even figures the average annual return for you.
http://optionprofiteer.com   (2601 words)

  
 Bear Call Spread Option Strategy
An option calculator such as Option-Aid performs these calculations for you instantaneously.
When we initiate a Bear Call Spread, the call we buy has the same expiration date, with a higher strike price (at a price point that we feel sufficiently limits our risk, without significantly lowering the premium we are collecting.
Your potential losses are limited to the difference between the strike prices multiplied by 100 times the point value of the contract, less the cost of establishing the position.
http://www.mindxpansion.com/options/bear-call-spread.html   (584 words)

  
 call option - definition of call option by the Free Online Dictionary, Thesaurus and Encyclopedia.
put, put option - the option to sell a given stock (or stock index or commodity future) at a given price before a given date
call option - the option to buy a given stock (or stock index or commodity future) at a given price before a given date
stock option - the right to buy or sell a stock at a specified price within a stated period
http://www.thefreedictionary.com/Call+Option   (185 words)

  
 call option - OneLook Dictionary Search
Call Option : AMEX Dictionary of Financial Risk Management [home, info]
Call option : Futures and Options Market Terminology [home, info]
noun: the option to buy a given stock (or stock index or commodity future) at a given price before a given date
http://www.onelook.com/?w=call+option&ls=a   (233 words)

  
 Call Option - Find, Compare, and Buy Call Option at Shopping.com
Learn more about option trading and trade free for one month!
Call Option - Find, Compare, and Buy Call Option at Shopping.com
Open a new account today and get free market news, data, charts and quotes.
http://www.shopping.com/xGS-Call+Option~NS-1   (228 words)

  
 OptionMonitor.com
View comprehensive Covered Call Data, Analysis, Calculators, Tools & Graphs as well as Stock Data and quick links for your important investment decisions.
...Users have the ability to type in their Own "Purchase Price" in order to re-calculate Covered Call yields to view a more accurate picture of their transaction.
Once you've tried OptionMonitor.com, you will see just how valuable and necessary a weapon it is in your financial arsenal.
http://www.optionmonitor.com   (923 words)

  
 Call Option - Glossary - Encyclopedia - Library - VC Experts
The right to buy a security at a given price (or range) within a specific time period.
For more information on this topic, try one of the following options:
An attorney-client relationship does not exist in connection with the non-legal services VC Experts provides.
http://vcexperts.com/vce/library/encyclopedia/glossary_view.asp?glossary_id=196   (164 words)

  
 Legal Definition of Call Option
CALL OPTION - The right to purchase stock at a specified (exercise) price within a specified time period.
Court, Business and Personal Forms for all Situations and Locations
The 'Lectric Law Library's Lexicon On * Call Option *
http://www.lectlaw.com/def/c004.htm   (49 words)

  
 Forex Options: Call Option
The option buyer pays a premium to the seller in every option transaction.
A call option gives the buyer the right, but not the obligation, to purchase a specific forex contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date).
Please note that "puts" and "calls" are separate options contracts and are NOT the opposite side of the same transaction.
http://forex-options.blogspot.com/2005/02/call-option.html   (126 words)

  
 Call Option
The seller, or grantor, is obliged to deliver the gold if the buyer wishes to exercise the option and for that charges a premium.
A contract between buyer and seller which gives the buyer the right but not the obligation to buy a specified amount of gold (or other commodity) at a pre-determined (striking) price on or before a specified date.
Usually abbreviated to ¥call' and is the opposite of put option.
http://www.pamp.com/gold_c/Info_site/in_glos/in_glos_calloption.htm   (72 words)

  
 Helpful call option information
option with your methods i made 2 500...
option and i ll make another 3 000 when...
call at a strike price of 10 00 for 0 75...
http://www.inforabbit.com/c/call_option.htm   (280 words)

  
 Securitisation glossary-Call Option
Call Option - Is a contract whereby the purchaser, owner or holder is given the right but is not obligated to purchase the underlying security or commodity at a fixed strike price within a limited time frame.
http://www.vinodkothari.com/glossary/Callopti.htm   (37 words)

  
 Covered Calls Daily-122 Covered Call Option and Stock Guide
Writing stock-covered calls reduces stock investing cost--option premium lowers stock cost.
Writing a stock-covered call on $5-$25 stock is profitable, easy, and so safe it's approved for IRAs.
Select winners consistently with The Option Yield Report--top yield stock options in a sortable guide revised 4x daily.
http://www.get122.com   (97 words)

  
 Unplanned Pregnancy and Abortion Information from Option Line
Our trained consultants are available 24/7 to listen to your concerns and to answer your questions about pregnancy, abortion and related issues.
Unplanned Pregnancy and Abortion Information from Option Line
http://www.pregnancycenters.org   (74 words)

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