Contents:
Good Reads 11 Golden Rules of Investing.
Small, Mid, Large Cap Stocks. Number of Complaints. At the beginning of the month. Received during the month.
Resolved during the month. Pending at the end of the month.
Reasons for Pendency. Obviously, only in-the-money options have intrinsic value.
Time Value — The part of an option price that is based on its time to expiration. If an option has no intrinsic value i. Exercise — This occurs when the owner of an option invokes the right embedded in the option contract.
Interestingly, options are a lot like most people, in that exercise is a fairly infrequent event. See Cashing Out Your Options. That means he or she is required to buy or sell the underlying stock at the strike price.
Index Options vs. Equity Options — There are quite a few differences between options based on an index versus those based on equities, or stocks.
Second, the last day to trade most index options is the Thursday before the third Friday of the expiration month. It might actually be the second Thursday if the month started on a Friday.
But the last day to trade equity options is the third Friday of the expiration month. NOTE: There are several exceptions to these general guidelines about index options. See What is an Index Option? Stop-Loss Order - An order to sell a stock or option when it reaches a certain price the stop price. Past this price, you no longer want the cheese; you just want out of the trap. When your position trades at or through your stop price, your stop order will get activated as a market order, seeking the best available market price at that time the order is triggered to close out your position.
In those situations, stocks are likely to gap — that is, the next trade price after the trading halt might be significantly different from the prices before the halt. Standard Deviation — This site is about options, not statistics. If we assume stocks have a simple normal price distribution, we can calculate what a one-standard-deviation move for the stock will be.
This comes in handy when figuring out the potential range of movement for a particular stock. Most pricing models assume a log normal distribution. Ally Financial Inc. Ally Bank, the company's direct banking subsidiary, offers an array of deposit and mortgage products and services. Mortgage credit and collateral are subject to approval and additional terms and conditions apply.