问个OPTION操作常识问题

noname6688

My first option is to sell a put contract of STP at $10, this month.  proceeding is $0.95 per contract

I try to confirm that, Does the contract means that if the STP reaches the strike price $10 any time on OE day,
I have to buy STP at $10 regardless the closing price of STP on this OE day?

If STP did not reach $10 OE time ( not pre or after market), then I do not have to buy STP at $10

Thanks

dayuangone8

Depends on the close price of OE day. But if it is in money anytime before OE, somebody have the right to sell you the stock at $10 (although it  is not a good idea to do it)

Summerrose

My first option is to sell a put contract of STP at $10, this month.  proceeding is $0.95 per contra ...
noname6688 发表于 2010-8-18 14:37

The settling price is the close price.
You have to buy the stock if the close price is below $10.
Sometimes, you probably will not be assigned the stock if the close price is $9.99 because of the transaction fee.
You break even point is $9.05.
Just curious, what will you do next if you are assigned the stock?

lwjnbtx

If STP is below $10 at the closing of OE day, you might get exercised by buying the stock @ $10.

If STP is over $10 at the closing (15min after) of OE day, your short put will expire worthless and you will keep the premium.

black

My first option is to sell a put contract of STP at $10, this month.  proceeding is $0.95 per contra ...
noname6688 发表于 2010-8-18 14:37

    you selling option without knowing this?

sunnysunny

如果你SHORT了股票STP，你可以卖PUT。如果买了股票STP，你应该卖CALL。

作为对冲，在买股票STP的时候如果怕它跌，可以买PUT来抵抗它可能的跌。

noname6688

The settling price is the close price.
You have to buy the stock if the close price is below $1 ...
Summerrose 发表于 2010-8-18 20:52

    I originally expect the STP  price go up after OE day.....so I can sold it later

bear

如果你SHORT了股票STP，你可以卖PUT。如果买了股票STP，你应该卖CALL。

作为对冲，在买股票STP的时候如果 ...
sunnysunny 发表于 2010-8-18 21:20

    空了股票卖PUT，万一它猛涨怎么办？是否可以买一个call来做保护。

ZZzz2000

sunnysunny

空了股票卖PUT，万一它猛涨怎么办？是否可以买一个call来做保护。
bear 发表于 2010-8-19 04:05

那你就收了你卖出PUT的premium.作为你卖出股票上涨风险的保单。premium收益对冲了你SHORT股票的风险。