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Total: 14 results found.

1. Theta Burn: Weekly Portfolio Update
(OBB Prodigy!/Theta Burn)
... and organic growth. If the stock stays below $10, I'll very likely allow exercise and hold the stock going forward. BSX has recovered substantially following this week's recall announcement sell-off. ...
Saturday, 20 March 2010
2. Theta Burn: BKE Update and New Trade
(OBB Prodigy!/Theta Burn)
... the spread when BKE was trading a bit over $28 per share, and exited when BKE was trading around $35 per share. I ended up exiting the position by exercising the Sep 25s after the March 30s were exercised ...
Thursday, 18 March 2010
3. Portfolio Update
(OBB Prodigy!/Theta Burn)
... The options have extremely low volume and a wide bid/ask spread. To avoid closing the spread below its natural $5.00 price, I may have to exercise the September 25s and then let the stock get called away ...
Saturday, 13 March 2010
4. Portfolio Update + New Trade
(OBB Prodigy!/Theta Burn)
... if the stock is at or above $10 per share at May expiration). IV as of today was around 90%, resulting in high premiums. Because I don't mind the possibility of exercise and holding the stock outright, ...
Wednesday, 10 March 2010
5. Some Potential Naked Puts
(OBB Prodigy!/Theta Burn)
... these moves can generally achieve favorable equity-like returns (10-15% IRRs) on the entire amount of reserved cash necessary if exercised, but while also maintaining some downside protection. And if one ...
Friday, 26 February 2010
6. And We're Off!
(OBB Prodigy!/Theta Burn)
... The puts offer a very good return if not exercised (real return based on the entire amount of cash necessary to exercise would be roughly 11% for four months), and the position has 11% downside protection.  ...
Friday, 19 February 2010
7. Introduction
(OBB Prodigy!/Theta Burn)
... exercise naked positions, and (3) preserve capital. The account will be treated very much like a hedge fund, I have a goal of beating the return of the S&P500 by 10-15% a year over a long period of ...
Saturday, 13 February 2010
8. 4.1- Option Pricing Basics
(Courses/Undergraduate 200 Level)
... Price As we talked about previously, the strike price is the price at which the option contract can be exercised. As the underlying stock of call options rise in value, the more premium will be ...
Thursday, 19 November 2009
9. 4.0- Chapter 4: Options Pricing
(Courses/Undergraduate 200 Level)
... 1.4, European-style option contacts can only be exercised at expiration, whereas American-style options can be exercised at any time before expiration. This obviously makes the Black-Scholes model imperfect. ...
Thursday, 19 November 2009
10. 2.3- Short Option Risk Graphs
(Courses/Freshman 100 Level)
... the investor owns 100 shares of a stock they may write a call option to a call buyer. The risk is that the call writer will have the stock called away from them if the call buyer decides to exercise the ...
Monday, 16 November 2009
11. 2.2- Long Option Risk Graphs
(Courses/Freshman 100 Level)
... ) At expiration underlying stock price is $53. Payoff at expiration = $53 - ( $47) = $6.00 payoff The call buyer can now exercise the contract and buy the underlying stock for $45 per share even ...
Monday, 16 November 2009
12. 1.7- Exercise & Assignment
(Courses/Freshman 100 Level)
As we have talked about, option contracts give the buyer the right to exercise the  contract at any time before expiration (assuming American-style). When this happens, the seller of the option contract ...
Monday, 16 November 2009
13. 1.4- Option Styles
(Courses/Freshman 100 Level)
Option styles refer to the type of exercise that takes place. There are two types of styles that investors needs to be concerned with: American-style American-style options allow the option buyer ...
Monday, 16 November 2009
14. 1.2- Basic Option Terminology
(Courses/Freshman 100 Level)
... which the option contract may be exercised. Premium This is the market value of the option contract. Underlying An equity option’s underlying asset is the stock that the contract ...
Sunday, 15 November 2009

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