Wednesday, May 22nd, 2019

What Happens to a Call Option if a Company Splits Up?

How to trade stock options can vary with sometimes unforeseen circumstances. For example, what happens to a call option if a company splits up? What happens if the company merges with another company? How about when dividends are paid? For options traded on the CBOE, the Chicago Board Options Exchange, options are adjusted to fit [...]

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 [...]

Interest Rate Option Trading

March 5, 2010 by T.D. Thompson  
Filed under Options Trading Tips

Image via Wikipedia

The Chicago Board Options Exchange (CBOE) offers interest rate option trading. CBOE describes interest rate options as “European-style, cash-settled options on the yield of U.S. Treasury securities.” This is one of the kinds of options trading that deals solely in projected interest rates. These options trade in U.S. [...]

When is Trading Call Options a Good Option?

November 24, 2009 by T.D. Thompson  
Filed under Call Options, Options Trading Tips

Of all the means of making a profit in the stock markets trading options is sometimes a good option. In the American stock markets you can buy or sell stock options. You can buy or sell either puts or calls in options trading. Which you do depends upon where you think a stock is going [...]