Questions tagged [call-options]
A call option is a contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a pre-determined price within a specified time frame. Related tags are icall-options, options, options-assignment, option-exercise and should be used when appropriate.
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What happens if I buy call options with a strike price lower than current market value?
Looking into options trading for the very first time and I wanted to make sure I'm understanding things correctly. In my investment app I see call options available for lower than the market value of ...
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why CRWD OTM calls were bought <10 minutes before expiry
CRWD was around 349 when the options were bought. within 2 mins of time, I have seen CRWD 365C hitting repeatedly which were expiring in 10 mins (times shown in the image are PST) and the money is not ...
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Can someone explain to me the best option strategy here?
NOTE: By "covered put" we mean covered by a short position, not a cash-secured put.
I have the following question from my SIE textbook:
If a customer had a large cash position and was ...
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Large ATMU trades : were they sold calls or a bull call spread?
Here's all the options trades for ATMU on 2024-03-21 that had a premium greater than $10,000:
I've highlighted two that were both of size 10,000.
In both of those, the price is closer to the 'bid'. I....
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how do in the money options work
if i buy a call with a strike price below the current market price, could I sell it immediately for a profit? How does a strike price below the current market price work.
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why volatility increases price for ITM call options?
Similar questions have been asked here, but I'm not able to find this exact question. For a European call option, if it's very in-the-money, wouldn't a higher volatility decrease the probability it ...
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Suggestion to recover from a bad naked call
I sold a Jan 2026 CRWD $140 Call, and now the price skyrocket to 235 (I know, bad move)
How do one usually get out of this situation?
Many thanks.
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Can you effectively reduce the cost of a long call on an index with a synthetic long and married put (e.g. replicate an XSP call using SPX options)?
Imagine you want to use periodic cashflows to purchase deep-in-the-money LEAPS (>1yr expiration calls) on SPX, but the size of the cashflows are too small to do so consistently (the cost of such a ...
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Question about CC
I think I'm confused about parts of the CC process. If you're feeling charitable please help a brother out.
My understanding:
I buy 100 shares of ABC @ $25 (5 days duration)
Sell 1 CC contract of ABC ...
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Can in-the-money covered calls be rolled indefinitely?
A bit of history:
I worked at a company that granted me a bunch of META shares. So my initial cost for these shares is $0. I have never actually traded options before in my life. I find myself in a ...
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Explaining equity being analogous to a call option and bonds being equivalent to a short put
I read this:
Equity in a corporation is essentially a call option on the enterprise
value (the sum of all the firm’s assets) with a strike price equal to
the firm’s debt. The firm’s bonds are a risk-...
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DOW Mini Futures Options Liquidity - Symbol YM
I am trading on the Interactive Brokers TWS platform. That is the name of the broker and the platform they offer that I use. I have noticed that there is almost no liquidity on the YM Mini option ...
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Breakeven for debit spread
How are the Max Gain and Break Even calculated here on Fidelity?
I thought the breakeven would be the strike price of the long call plus the net debit: $16 + $6.03 = $22.03
And the max gain would be ...
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Why call options are more profitable compared to stock trading?
I am having a hard time trying to understand why buying call options are more profitable (if you predict the market right), compared to selling & buying stocks right away. Let me explain my ...
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Option breakeven
If a 50 call is sold for a $4 premium (exclude commission for this illustration), the buyer's breakeven on the trade is 54 (i.e. 50+4). Correct? As the seller of that call, is it correct to calculate ...
