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The price of this option is influenced by multiple factors, including the stock’s current price, the option’s strike price, time to expiration and implied volatility.
On 1 July 2010, the SPX launched an electronic trading platform (ETP). The Exchange now has market phases which allow the brokers to perform tasks throughout a business day. With the electronic system of trading, the price time priority is maintained, but there are two sessions of normal trading hours.
Exchanges quote options prices in terms of the per-share price, not the total price you must pay to own the contract. For example, an option may be quoted at $0.75 on the exchange.
Options Clearing Corporation's (OCC) Options Symbology Initiative (OSI) mandated an industry-wide change to a new option symbol structure, resulting in option symbols 21 characters in length. March 2010 - May 2010 was the symbol consolidation period in which all outgoing option roots will be replaced with the underlying stock symbol.
The most bearish of options trading strategies is the simple put buying or selling strategy utilized by most options traders. The market can make steep downward moves. Moderately bearish options traders usually set a target price for the expected decline and utilize bear spreads to reduce cost.
The big macroeconomic number to watch today is inflation data released by the Bureau of Labor Statistics (BLS). The agency released its wholesale price index, which was up just .2% in December.
On January 19, 1993, the Chicago Board Options Exchange introduced the CBOE Volatility Index, commonly known as the VIX Index. [16] The index was developed by Robert E. Whaley, a Vanderbilt University finance professor, [17] and was intended to measure the 30-day implied volatility of S&P 100 option prices. [16]
If the stock closes below the strike price at option expiration, the trader must buy it at the strike price. Example : Stock X is trading for $20 per share, and a put with a strike price of $20 ...