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 when you sell an options contract and simultaneously buy one with a later expiration date and a higher or lower strike price. For example, if your sell to open the AAPL NOV 145.00 Call and then buy to open the AAPL DEC 150.00 Call , you have created a diagonal spread. See also:…
This is the process of satisfying put exercise or call assignment. In either case, stock is delivered. In the case of indexes, delivery involves the transfer of cash equal to the settlement value of the index minus the strike price of the options contract. See also: Options Assignment, Automatic Exercise, American Style Option
This is when you sell a straddle against shares that you already own. It is important to note that the covered straddle is not really fully covered since only the calls are covered. The strategy has a bullish bias.
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…
The holder of a physical delivery XYZ call option has the right to purchase shares of XYZ Corporation stock at the specified exercise price upon exercise prior to the expiration of the option. The holder of a physical delivery XYZ put option has the right to sell shares of XYZ Corporation at the specified exercise…
Are Call Sweeps Bullish? The short answer is not always. I have been tracking and trading Unusual Options Activity for many years and I have seen both Bullish & Bearish sweeps on the Call side. What this means is that you can have a sweep order to sell Calls which is essentially taking a bearish…
