When the price of the underlying stock is equal to the strike price of the option, the contract is At The Money.
In the image below you can see that the current price of APPL is 139 and the red rectangles are highlighting the fact that the JUL 15th 139.00 Calls & Puts are currently “at the money”
This is the process of carrying out the terms of an options contract. A call buyer can exercise his or her right to buy the stock at the strike price. A put owner can exercise his or her right to sell the contract. See also: Exercise Price, Exercise Settlement Value, Automatic Exercise
A Golden Sweep Option (GSO) is popularized by the folks at Flowalgo and it is basically a very large order that hits the market and takes all or most the inventory/offers at once. This is usually a very high probability signal given the aggressive stance of the trader(s) behind it. These orders can be both bullish…
Front Month contracts are options contracts that have the least amount of time remaining before expiration. For example, on the 1st of August, the front month contract would the contract that expires in the Month of August. Similarly, on August 31st, the front month contract is the September contract is the front month contract because…
The Intrinsic Value is basically the value of an in-the-money option minus its time value. Intrinsic value is the current real tangible value of the options contract. The intrinsic value of a call option is calculated by subtracting the strike price of the Option from the underlying stock. For a put, intrinsic value is the…
How Do You Find Option Sweeps? There are two ways you can go about finding Option Sweeps: If you go with option 1 then you need to set your filters to look for repeat activity in a stock and then you will have to tabulate the total number of contracts that are bought across all…
This is also known as a Crossed Trade and it is basically a transaction/trade that is done from one broker to another ( broker to broker) rather than in the open market place. See Also Option Conversion
