Index options are cash-settled so you pay/receive the difference between settlement and strike in cash. That is, each point is worth $100 so if...
Options on S&P futures are American-style. Options on cash index (SPX) are actually European-style. In fact all index options are European-style,...
I've been on this forum for quite some time and I never pay attention to ratings, I don't even know how to rate threads or have any desire to do...
It doesn't matter whether it is ITM, ATM or OTM. Synthetics always use the same strike(s). For example, say the stock is at 50. If you have a...
A short put is equivalent to a covered call position at the same strike (i.e. long stock and short call with the same strike price as the put).
If it's a naked short call I strongly suggest that you close it out right away and not make another option trade until you gain some knowledge. If...
Index options are cash-settled, so if you are assigned on an option (early or at expiration) you will have to pay the difference between the...
Most index options are European-style so you don't have to worry about early assignment. However some are not, namely OEX, which has...
Another way of doing the same thing is simply buying a 1300 call and selling a 1350 call, or alternatively selling a 1350 put and buying a 1300 put.
Generally, I get out if I can book about 80-90% of the profit, however in certain situations I may get out earlier. It really depends on the...
Using a market order is asking for trouble! If you really want to get in/out then you should use a marketable limit order - i.e. if you are...
Your calculation is wrong. You make $1,000 on the short stock. You lose $600 on the long call that expires worthless. You lose $300 on...
An index doesn't pay a dividend, only the constituent companies do. So, by definition, you cannot have a single date and amount for an index.
The OP is buying the call not selling it.
Dividends and borrow rate are not risks, but two pieces of information you are most likely missing that make this look like free money to you!
Ditto.
No! To get the dividend you need to own the actual stock, and to lose (i.e. pay) the dividend you need to be short the actual stock. However,...
Whatever you say, mate!
Credit spreads can only be done in a margin account as they require a margin so I don't know how you can have a cash account.
No, you don't need margin to buy an option, but, as I said, option trading is done in a margin account, period.
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