Phlx currency options brokerage accounts
A bull spread with calls and a bear spread with puts are examples of debit spreads. See also Exercise settlement amount. This date is sometimes referred to simply as the ex-date, and can apply to other situations e. The Hidden Key to Trading Success.
While a strategy's break-even point s are normally stated as of the option's expiration date, a theoretical option pricing model can be used to determine the strategy's break-even point s for other dates as well. This position generally profits from phlx currency options brokerage accounts large movement in either direction in the underlying instrument. The premium of an out-of-the-money option consists entirely of time value. Institution - A professional investment management company. Diagonal spread - A strategy involving the simultaneous purchase and writing of phlx currency options brokerage accounts options of the same type that have different strike prices and different expiration dates.
See also Market maker and Market maker system competing. This is shares phlx currency options brokerage accounts 1 equity option unless adjusted for a special event. Neutral - An adjective describing the belief that a stock or the market in general will neither rise nor decline significantly. Covered straddle - An option strategy in which one call and one put with the same strike price and expiration are written against each shares of the underlying stock.
The options may have the same strike price or different strike prices. Index Phlx currency options brokerage accounts Basic Strategies. If the value of the securities relative to the loan declines to an unacceptable level, this triggers a margin call. Short stock position - A strategy that profits from a stock price decline.
This insures that if the owner of the option exercises, the writer of the option phlx currency options brokerage accounts not have a problem fulfilling the delivery requirements. Synthetic short put - A long stock position combined with a short call of the same series as that put. Theoretical option pricing model - A formula that can phlx currency options brokerage accounts used to calculate a theoretical value for an option using current stock prices, expected dividends, the option's strike price, expected interest rates, time to expiration and expected stock volatility. A short call position is uncovered if the writer does not have a long stock or deeper-in-the-money long call position.
Break-even point s - The stock price s at which an option strategy results in neither a profit nor a loss. See also Uncovered call option writing and Uncovered put option writing. This position results from an opening purchase transaction long call or long put.
This is unlike a day order, which expires if not executed by the end of the trading day. Diagonal spread - A strategy involving the simultaneous purchase and phlx currency options brokerage accounts of two options of the same type that have different strike prices and different expiration dates. Theoretical value - The estimated value of an option derived from a mathematical model.