Tuesday, July 17th, 2018

How to Write a Covered Call

A covered call option is an options contract sold by someone who owns the underlying stock, commodity, or future. To profit from writing calls one needs to learn how to write a covered call. So, what is a covered call? Owning stock provides a cover for selling a call on a stock. If stock prices [...]

How Do Puts and Calls Work?

Puts and calls are types of options contracts. How do puts and calls work? In trading both puts and calls the options trader pays for the right to sell using a put option or right to buy using a call option. Puts and calls are used in trading stocks, commodities, or foreign exchange. The buyer [...]

Yuan Options Trading

Western news sources quote the Shanghai Daily as saying that the Chinese government will soon allow Yuan options trading within China. Because hedging foreign currencies is a common and effective means of reducing currency risk in international business one can expect to see Chinese companies taking advantage of Yuan options trading in China when it [...]

Who Owns Citigroup?

As the question of who owns Citigroup gets settled, options on Citigroup are through the roof. The news reports that the U.S. government is selling its stake in the financial giant. Who owns Citigroup will no longer be the Feds. Outstanding options contracts on Citigroup surged to over twenty-five million. That translates, of course, to [...]

How Do Call Options Work on General Motors?

How do call options work on General Motors? After the successful initial public offering of General Motors stock the revitalized company’s stock is also listed on options exchanges. The stock has been trading in and around the $34 range and many do not expect to see a rapid increase in share price. Thus, some options [...]