[Options]
To all,
I am a new investor -since October- and have become interested in options as a hedging tool. I trade with Lombard. When looking at their options chain I thought of a question one of you might be willing to answer.
As of today's date the Sunday after the options expirations date for February, the chain still shows call and put options for February. I suppose they will most likely update on Monday but it sprang a question. When usually IS the cut of date/hour one can buy calls or puts, or is there one? Conceivably can one buy/sell options up to the last trading minute before closing on Friday and expiration date Saturday? I know one wouldn't want to do that, it would be a futile and a losing money (commission) exercise. However, the point "question" here is, is there an artificial cut-off date, or does the price of the call/put provide a natural "if you will" cut-off date. I.e. a case of strike + premium price being "at the money," and no time left?
Also Pat in your post #10921, you mentioned you sold both April and July puts and March and April calls. Bullish indeed, betting the price goes up in both instances correct? My questions is twofold, when one sells a "protected" put does one receive the premium as listed in the options chain? For example listed is an April 15 put for 2/18 ASK. Is this the premium one receive on that contract minus the brokerage commission? Or am I missing another detail? Secondly, why buy calls for the same April period the premiums for the calls are higher, would one be paying more for this arrangement that just simply selling more puts. What am I missing here?
A simple explanation would be greatly appreciated the terminology is still fairly new to me and this, along with the daily "new" acronyms I am learning on this tread ( Investing /technology both with their own lexicons) make it comparable to learning yet another new language. My first is Dutch- German then English and I have just started learning Italian. Learning a new language is not new to me but I have now reached a stage where well.... it takes a "byte" (read character) or two more to for me to comprehend :-O
To all thank for your great contributions to the Amati tread, without it I know I would have never discovered this small "couleur de rose" company with it's ever so exciting technologies. Since I am a visual artist "Not" an engineer or "techie," and will not be able to contribute much to the general technical discussions so, I will happily go back to reading this tread in abeyance. Thank you in advance for your response.
Ciao,
Lia |
