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In finance the put/call ratio (or put-call ratio, PCR) is a technical indicator demonstrating investor sentiment. [1] The ratio represents a proportion between all the put options and all the call options purchased on any given day. The put/call ratio can be calculated for any individual stock, as well as for any index, or can be aggregated. [2]
Option values vary with the value of the underlying instrument over time. The price of the call contract must act as a proxy response for the valuation of: the expected intrinsic value of the option, defined as the expected value of the difference between the strike price and the market value, i.e., max[S−X, 0]. [3]
Long 1 call with a strike price of (X − a) Short 2 calls with a strike price of X; Long 1 call with a strike price of (X + a) where X = the spot price (i.e. current market price of underlying) and a > 0. Using put–call parity a long butterfly can also be created as follows: Long 1 put with a strike price of (X + a) Short 2 puts with a ...
Tech stocks have dominated the market narrative over the last couple of years, fueling the bull market and the AI boom. Investors have a lot of options when it comes to tech ETFs.
Cava Group (NYSE: CAVA) stock was a breakout winner last year as the market cap of the Mediterranean fast-casual restaurant chain more than doubled on blistering growth. The numbers the company is ...
Writing out-of-the-money covered calls is a good example of such a strategy. The purchaser of the covered call is paying a premium for the option to purchase, at the strike price (rather than the market price), the assets you already own. This is how traders hedge a stock that they own when it has gone against them for a period of time.
For premium support please call: 800-290-4726 more ways to ... Axon is a unique company in the stock market and the business world. ... Sensors, which mostly account for body cameras, were up 18% ...
A covered call position is a neutral-to-bullish investment strategy and consists of purchasing a stock and selling a call option against the stock. Two useful return calculations for covered calls are the %If Unchanged Return and the %If Assigned Return. The %If Unchanged Return calculation determines the potential return assuming a covered ...