Expiring calls
$AMC Entertainment (AMC.US)$
Hi, anybody can explain what expiring calls are?? What is the effect of this happening??
Hi, anybody can explain what expiring calls are?? What is the effect of this happening??
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Exponential Risk : Calls are a type of option that gives the person who bought it the option to buy 100 shares at the strike price. If the current price of the stock is higher than the strike price (price you said the stock would be over) for the option, it is "in the money", meaning it would be better to execute the option to buy at that strike price than purchase 100 shares at the current market price. This requires the option seller to give you 100 shares, and if they sold it naked (did not have 100 shares) they have to buy shares at the current market price. That buying action drives the price up, making other options closer to being in the money, causing those selling naked or cash covered calls consider hedging their options by buying shares.
JunkIsKing : Options is a form of stock trading where u trade in terms of contracts. U can buy a call or put contracts In options. This contracts have a Expire date. You Should end this contracts before the expire date if you are Profitable. I’m not an expert in options.
GOOBERHAG JunkIsKing : You can also roll an options expiration date to a different date.
Bull Run GOOBERHAG : How?