Stock index options slideshare

19 Nov 2015 2 Option Call Option Put Option Stock Option Index Option Key Terminologies; 3. 3 Option: Standardized Contract Gives Buyer the Right but not  Instrument Type, Underlying, Expiry Date, Option Type, Strike Price, Prev Close, Open Price, High Price, Low Price, Last Price, Volume (Contracts), Turnover * Index Options: These are very similar to stock options, but rather than the underlying security being stocks in a specific company it is an index – such as the S&P 

4 Nov 2012 A financial derivative that gives the holder the right, but not the obligation, to buy orsell a basket of stocks, such as the S&P 500, at an agreed-  19 Nov 2015 2 Option Call Option Put Option Stock Option Index Option Key Terminologies; 3. 3 Option: Standardized Contract Gives Buyer the Right but not  Instrument Type, Underlying, Expiry Date, Option Type, Strike Price, Prev Close, Open Price, High Price, Low Price, Last Price, Volume (Contracts), Turnover * Index Options: These are very similar to stock options, but rather than the underlying security being stocks in a specific company it is an index – such as the S&P  16 Mar 2019 Stock Index Options. Chapter 9. Stock Index Option. Options on stock indices: S&P 500, S&P 100, and MMI. Features: Cash Settlement: when  Index Options The most popular indices underlying options in the U.S. are The S&P 100 Index (OEX and XEO) The S&P 500 Index (SPX) The Dow Jones Index  

Index Options: These are very similar to stock options, but rather than the underlying security being stocks in a specific company it is an index – such as the S&P 

In a married put strategy, an investor purchases an asset (in this example, shares of stock), and simultaneously purchases put options for an equivalent number of shares. The holder of a put option has the right to sell stock at the strike price. Each contract is worth 100 shares. The underlying index for stock options can either be an index weighted by market capitalization or one weight by an equal dollar. The investor, to this end, has the option to trade in such broad-based indices as s&p index options or sector-specific indices that are focused on such industries as healthcare or tech. Third, index options are cash-settled, but equity options result in stock changing hands. NOTE: There are several exceptions to these general guidelines about index options. If you’re going to trade an index, you must take the time to understand its characteristics. See What is an Index Option? or ask an Ally Invest broker. If the stock /index lies between your upper and lower break-even point you suffer losses to that extent. With Straddles, the investor is direction neutral. All that he is looking out for is the stock/index to break out exponentially in either direction. #6 Short Straddle Options Trading Strategy. A Short Straddle is exactly the opposite of Long Straddle. Stock Options: The underlying asset for these contracts is shares in a specific publically listed company. Index Options: These are very similar to stock options, but rather than the underlying security being stocks in a specific company it is an index – such as the S&P 500.

Instrument Type, Underlying, Expiry Date, Option Type, Strike Price, Prev Close, Open Price, High Price, Low Price, Last Price, Volume (Contracts), Turnover *

In the class of equity derivatives the world over, futures and options on stock indices have gained more popularity than on individual stocks, especially among institutional investors, who are major users of index-linked derivatives. An exchange-traded fund (ETF) is essentially a mutual fund that trades like a stock. ETF options are traded the same as stock options, which are "American style" and settle for shares of the underlying ETF. Index options are settled “European style,” which means they are settled in cash. 27 2. Now assume the same for a speculator who takes a long position on a Marchfuturescontractat$59 • Ifthepriceincreasesto$65, thespeculatorsellsfor$59andimme- diatelybuysfor$65,leadingtoagainof$6perbarrel[$12,000gain A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed upon price and date. There are two types of options: puts, which is a bet that a stock will fall, or calls, which is a bet that a stock will rise. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker or from The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606. Breakeven Point - BEP: The breakeven point is the price level at which the market price of a security is equal to the original cost . For options trading, the breakeven point is the market price Updated world stock indexes. Get an overview of major world indexes, current values and stock market data. Skip to content. Markets Stocks. Before it's here, it's on the Bloomberg Terminal.

In a married put strategy, an investor purchases an asset (in this example, shares of stock), and simultaneously purchases put options for an equivalent number of shares. The holder of a put option has the right to sell stock at the strike price. Each contract is worth 100 shares.

Third, index options are cash-settled, but equity options result in stock changing hands. NOTE: There are several exceptions to these general guidelines about index options. If you’re going to trade an index, you must take the time to understand its characteristics. See What is an Index Option? or ask an Ally Invest broker. If the stock /index lies between your upper and lower break-even point you suffer losses to that extent. With Straddles, the investor is direction neutral. All that he is looking out for is the stock/index to break out exponentially in either direction. #6 Short Straddle Options Trading Strategy. A Short Straddle is exactly the opposite of Long Straddle. Stock Options: The underlying asset for these contracts is shares in a specific publically listed company. Index Options: These are very similar to stock options, but rather than the underlying security being stocks in a specific company it is an index – such as the S&P 500.

In a married put strategy, an investor purchases an asset (in this example, shares of stock), and simultaneously purchases put options for an equivalent number of shares. The holder of a put option has the right to sell stock at the strike price. Each contract is worth 100 shares.

Third, index options are cash-settled, but equity options result in stock changing hands. NOTE: There are several exceptions to these general guidelines about index options. If you’re going to trade an index, you must take the time to understand its characteristics. See What is an Index Option? or ask an Ally Invest broker. If the stock /index lies between your upper and lower break-even point you suffer losses to that extent. With Straddles, the investor is direction neutral. All that he is looking out for is the stock/index to break out exponentially in either direction. #6 Short Straddle Options Trading Strategy. A Short Straddle is exactly the opposite of Long Straddle. Stock Options: The underlying asset for these contracts is shares in a specific publically listed company. Index Options: These are very similar to stock options, but rather than the underlying security being stocks in a specific company it is an index – such as the S&P 500. Options can act as insurance to protect gains in a stock that looks shaky. They can be used to generate steady income from an underlying portfolio of blue-chip stocks.

Index option 1. 2 An option whose underlying security is an index. If exercised, settlement is made by cash payment, since physical delivery is not possible.A financial derivative that gives the holder the right, but not the obligation, to buy orsell a basket of stocks, such as the S&P 500, at an agreed-upon price and before acertain date. Options Presentation for Corporate Finance at McGill (by The Jones')