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Because options prices are automatically updated as soon as the underlying stock price changes, the potential existed to update at five times as many price points. [ 3 ] Dollar Strikes: The standard stock option strike prices are in increments of $2.50 at and below $25, and in $5.00 increments for strikes above $25.
The PUT strategy is designed to sell a sequence of one-month, at-the-money, S&P 500 Index puts and invest cash at one- and three-month Treasury Bill rates. The number of puts sold varies from month to month, but is limited so that the amount held in Treasury Bills can finance the maximum possible loss from final settlement of the SPX puts.
The options market idea faced resistance from officials at the Securities and Exchange Commission. [8] The CBOT hired Joseph Sullivan to address regulator concerns and present the concept to the New York brokerage community. [6] In October 1971, the SEC relented and approved the effort. [9] In February 1972, the Chicago Board Options Exchange ...
A 1256 Contract, as defined in section 1256 of the U.S. Internal Revenue Code, is any regulated futures contracts, foreign currency contracts, non-equity options (broad-based stock index options (including cash-settled ones), debt options, commodity futures options, and currency options), dealer equity options, and any dealer security futures contracts.
OCC is also a sponsor of the Options Industry Council, an industry resource that is funded and managed by OCC to promote exchange-listed options. OIC's Roundtable is the independent governing body of the council and is composed of representatives from the U.S. options exchanges, member brokerage firms and OCC.
SPX 141122P00019500. The above symbol represents a put on SPX, expiring on 11/22/2014, with a strike price of $19.50. LAMR 150117C00052500. The above symbol represents a call on LAMR, expiring on 1/17/2015, with a strike price of $52.50. The OCC option symbol can be mapped to other identifiers, such as a Financial Instrument Global Identifier ...
LEAPS are often used as a risk reduction tool by investors. For example, in an article in Stocks, Futures and Options Magazine, Dan Haugh of PTI Securities & Futures suggests that stock investors can manage risk and price protection by considering the purchase of an exchange-traded fund (ETF) and "...buying put protection on that ETF with LEAPS."
Typically, exchange-traded option contracts expire according to a predetermined calendar. For instance, for U.S. exchange-listed equity stock option contracts, the expiration date is always the Saturday that follows the third Friday of the month, unless that Friday is a market holiday, in which case the expiration is on Thursday right before ...