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Covered call put option trading xsp


Max profit on this is $88 per contract, which is the net credit received at the time of trade. Max loss is $67. At the current volatility level, there is a % chance of success with this trade.

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Contract Size - The amount of underlying asset covered by the option contract. This is generally 655. If an option is quoted for $, then one contract would cost $ x 655 = $755 and would cover 655 shares.

Bank of America Corporation (BAC) Option Chain - Stock

Market Order - An order to buy or sell securities at the current market price. The order will be filled as long as there is a market for the security. Read All About Options Market Order !

India Options FAQs >> Learn how to trade options in India

Each trade comprises two transactions, opening transaction and closing transaction. When you go long BUY call (or put) option as opening transaction it is called as &ldquo Buy to open&rdquo . You will close this position by taking opposite position . by selling the same amount of call (or put) option. Closing transaction in this case would be called as &ldquo Sell to close&rdquo .

WBMD, however, fell short of the straddle expectations. The stock finished the Dec 66th trading at $. With a total price of $ for the straddle makes the lower break even point $, so the stock was inside this range and therefore expired worthless.

Call Broken Wing Butterfly Spread - A Butterfly Spread with a skewed risk/reward profile which makes no losses or even a slight credit when the underlying stock breaks to downside. This is achieved by buying further strike out of the money call options than a regular butterfly spread. Read the tutorial on Call Broken Wing Butterfly Spread.

Call Time Spread - Another name for Call Calendar Spread. An Options Trading strategy where long term call options are bought and near term call options are written in order to profit from time decay. Read the tutorial on Call Time Spread.

FLEX Options
Exchange traded equity or index options, where the investor can specify within certain limits, the terms of the options, such as exercise price, expiration date, exercise type, and settlement calculation.

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At the Money - When an option's strike price is the same as the prevailing stock price. Read More About At The Money Options.


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