Canadian Options Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Canadian Options

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Benjamin Ng who wrote (1550)	9/19/2000 7:12:32 AM
From: Porter Davis	Read Replies (2) of 1598

>> One term I'm not familiar with is what an "opening" or "closing" order is. Anybody? Also, do _all_ contracts traded on the ME correspond to a delivery of 100 shares? An opening transaction is one in which you create a position while a closing transaction "liquidates" or closes out that position. When a new option series is listed, no contracts "exist". They are created out of whole cloth by an opening buyer and an opening seller. For every open short position there is a corresponding open long position. That may seem obvious, but it prevents the embarrassment sometimes found in equities where the short position exceeds the stock's float. All 'regular' equity options listed on the ME are for delivery of 100 shares of the underlying per contract. There are several issues currently trading which have different delivery specs (such as BCQ) due to spin-offs, distributions and the like. I'm sure glad this past summer is over and we're seeing the seasonal increase in volume. Various factors combined to make this the most expensive three months in my career. At least I'm still in business. Happy trading. Porter Specialist in ABX, BCE, BCQ, BLD, N.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next