What is a physical delivery option ?
A physical delivery option gives its owner the right to receive physical delivery (if it is a call), or to make physical delivery (if it is a put), of the underlying interest when the option is exercised.
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How To Understand Unusual Options Activity Data
ByivtradesThe best way for me to explain what you are seeing in a typical UOA trade is to show you an example of a typical trade and then break it down for you. The first thing you will probably notice in the image above is that one of the trades says “SWEEP DETECTED” and the…
Ask Definition
ByivtradesThis is also known as the offer. The asking price is the current market price at which an investor can buy the option in the market.
What Is Parity?
ByivtradesParity is basically a set of rules of equality that exist in the options market. For example, long stock and long puts is the as owning long calls. Parity generally holds, but (all else being equal) puts will often trade at lower prices than calls due to the impact of dividends and interest rates.
Option Delta
ByivtradesThe price change in an option for every point move in the underlying Stock/ETF. Put options have negative deltas. See Also: Delta Neutral
Cash Settlement
ByivtradesThere are some options settle for cash rather than shares. Indexes like the S&P 500 Index (.SPX) and the S&P 100 Index (.OEX) are examples of cash settled options.
Beta
ByivtradesThis is a measure of a stock’s volatility relative to the S&P 500 Index. High Beta stocks have high volatility. Stocks that have a beta reading of 1.00 or greater tend to move faster or are more volatile than the S&P index. And stocks that have a beta less than 1.00 tend to move slower…