Stock options and strike price?

Home | Links | Contact Us | Bookmark

Financial Forum Search :

Financial Forum

Investing

Finance Discussion Forum

Advertising & Marketing Corporations Credit Insurance Investing Personal Finance Renting & Real Estate Small Business Taxes Business & Finance

Are you a home owner is it a good or bad idea to refinance mortgage for home improvements?

...

Stocks? Confused?

Where can I find information about stocks and trading? I do not know much, but I would like to learn more and invest. Most information I find does not start off basic. You have to have some sort ...

I'm interested in stock. Where is a good place for me to start and learn the basics???

...

What site can I go to that will give me accurate penny stock advice? Free preferably!?

...

Investing - my first time in the stock market- should I go for Sears Holdings?

benn hearing a lot of good things about Sears Holdings. Any other sure bet, long term stocks. I want to get into one as I have limited amount of money. Another one I heard of is goggle - which one is ...

Where do ebay sellers get their stock from? like laptops and consoles?

I have always wondered where power sellers on ebay get stock from and how much for? does anyone know?...

If you just came up with 600,000 what would you do?

...

In mutual fund which is the best option - growth/dividend payout/divident reinvestment - now my age is 42?

...

Any idea which is reliable stock that i should buy now at this time when market is fluctuating very much??

...

What should I do with my extra 300 extra dollars per month?

I have a 401 k from my work. Should I invest in multiple places though?...

Other than 401k, what is a great investment for a 21 year old?

...

How to enter in share market ?Iam entirely new to this.But want to invest in share,?

Want toknow basics of sharemarket....

I Have an invention what do I do first?

...

Can I work in an Investment Bank if I'm terrible at mathematics?

...

If you had $4,000...?

how would you invest it?...

A month b4 i got a mail sayng that i hav won euro afro asian lottery awards inc 06 held on 30 aug,is that true

Date: Tue, 26 Sep 2006 14:39:29 +0100 (BST)
From: "mariah smith" <mrs_mariah_smith@yahoo.co.uk> Add to Address Book Add Mobile Alert
Yahoo! DomainKeys has confirmed ...

I am about to get 1000 dollars what should i s pend it on any suggestions?

...

If the stock market crash today doesn't affect anyone really, then why is it such a big deal in the media?

See my other question here:
http://answers.yahoo.com
Thanks!...

I am intrested to invest money in share market. Who will guide me ?

What is the diffrence between share market and Mutual fund ?...

Were from you?

...

grimmy b

Stock options and strike price?

Once an option reaches its "strike price", then the option contract can be "exercised", correct?
All the website tutorials say that before the option reachs the "strike price" it is worthless.
But then there are bid/ask prices on options that have not reached their strike.
So, can options be traded for profit/loss even when they are "out of the money"?

muncie birder

You can buy and SELL them at any time prior to the expiration date. And if you are lucky you can even do it for a profit.

cosi

options are insurance on price movements. because they are out of the money or very unlikely doesnt make them worthless. "when the vol. is high, do the butterfly!"

xcalibus

Out of the money options are only worthless when the underlying stock price does not exceed (for calls) or go below (for puts) the strike price when they expire.

Before expiration, they have time value. That is why there are people trading them.

They are cheaper but it takes a larger movement of the underlying stock price to make a profit.

lushy

read tips on investing and stocks to help you more on this site

john_mixer9

Yes, once the option contract has reached its strike price, the option can be exercises. If you don't reach the strike price then you're not making money. There are bids/ask prices on options that have not reached their strike because these traders want to get out of the position they have taken on whatever contract they have. You can buy the contract if you feel that a commodity will go to that strike price. So, yes options can be traded for profit/loss even when they are out of the money.

feanor

You can exercise the options regardless of the price of the underlying instrument...It's just crazy to buy a stock at $10 if it's selling in the open market for $9...But you don't know what the stock is going to do before expiration so that's why there are still value to "out of the money" options.

stock.geek

Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

I am sure that you can get your answers in this website.

http://investing.sitesled.com/

Good Luck and Best Wishes!

Azher

Yes, you can trade options for profit/loss even when they are "Out of Money".

Please do not forget to know about European Style Options and American Style Options.

EAA Duro

Yes, yes. Those are the answers to your questions.

lee_adamant

You can trade options until expiry. Only at expiry do options become worthless if they are out of the money. Until then even out of the money options have value due to TIME. Once time is up there is only INTRINSIC Value .. the difference between the option strike price and the market price.

Enter Your Message or Comment

User Name:
User Email:
Post a comment: