What is a cash-settled option?
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A block trade is, as the name suggests, a single large order that hits the Unusual Options Activity Tape all at once. A Sweep is a large order that is broken up and hits the tape in many different small orders. Here is an example of Block Trade: And here is an example of a…
The point at which a strategy produces no profit and no loss.
The exercise price setting formula for a series of delayed start options is the formula used by the options market on which the series is traded to set the exercise price for the series on the exercise price setting date. The exercise price setting formula is specified before the commencement of trading of each series…
There are three ways that you can go about setting stops on your Options trades and all three methods work well whether you are day trading or swing trading. Method 1: Setting A Percentage (%) Stop Loss This is basically when you take an option trade and set a stop loss on the contract price…
This is when you put on a short option position and hedge it with another option position or with long shares. This is essentially the opposite of a naked write.
If a physical delivery put option is exercised, the assigned writer must purchase the required number of shares at the specified exercise price regardless of their current market price. If a cash-settled option is exercised, the assigned writer must pay the cash settlement amount.