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Scalpers near simultaneous buy at bid sell at ask to

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Unformatted text preview: at bid, sell at ask to lock Scalpers: in the spread. 3. Floor Broker: executes trades for public traders. 3. Floor 4. Order Book Official: Exchange official who oversees 4. Order execution of limit orders entered into the computer. 5. AMEX, PHLX: Spets, Registered Option Traders 5. AMEX, (ROT): (ROT): All Rights Reserved Dr David P Echevarria 7 ORGANIZED OPTIONS TRADING E. Types of Orders placed on Options Exchanges 1. 2. 3. 4. 5. 6. E. F. G. G. Market orders Limit orders GTC orders Day Orders Stop orders All or None Offsetting Orders: closing out a position Open Interest: number of option contracts Opened on a Open [stock]. Exercising an Option; making or taking delivery at the Exercising request of the holder All Rights Reserved Dr David P Echevarria 8 OPTIONS CLEARING OPTIONS CORPORATION (OCC) A. A. B. C. D. E. Guarantees writer performance and as such Guarantees writer is an important intermediary is Handles the assignment on exercises Handles assignment All firms trading or brokering in options have All accounts with OCC accounts Sets capital requirements for members of the Sets OCC OCC Hold funds deposited for margin Hold requirements requirements All Rights Reserved Dr David P Echevarria 9 TYPES OF OPTIONS A. Stock Options; 2009 > 1500 different issues (CBOE...
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