KIC000058 - Types of Options Assets Underlvme Options...

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Options Options Terminology Call Key Elements Put - Exercise or Strike Long = Buy Price Short = Sell "" Write - Premium or Price Covered: Offsetting - Maturity or position Expiration Naked: No offsetting Notation position in the - Stock Price = S underlying - Exercise Price = X Margin Options cannot be purchased on margin Margin is required, however, when options are sold When a "naked" option is written the margin is the greater of o A total of 100% of the proceeds of the sale plus 20% of the underlying share price less the amount (if any) by which the option is out of the money SA total of 100% of the proceeds of the sale plus 10010 of the underlying share price For other trading strategies there are special rules Types of Options Assets Underlvme Exchanee-Traded Ooticns · "- N'I< Options (on n'ltP- -thln ~) \~)( Options (lB/)o I f¥'I6'f. .) +h ,i':t.< Options (C!3T, N'l'flU,CfIlf:, d:,-) ~,n~ ?ro$ ry' Options ~. . Options
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KIC000058 - Types of Options Assets Underlvme Options...

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