In place of holding the underlying stock in the covered call strategy, the alternative....[Read on...] Some stocks pay generous dividends every quarter.
You qualify for the dividend if you are holding on the shares before the ex-dividend date....[Read on...] To achieve higher returns in the stock market, besides doing more homework on the companies you wish to buy, it is often necessary to take on higher risk.
Once an option is sold, there exist a possibility for the option writer to be assigned to fulfil his or her obligation to buy or sell shares of the underlying stock on any business day.
One can never tell when an assignment will take place.
Currently, all of the stock options traded in the marketplaces are American-Style options.
When an option is exercised by the option holder, the option writer will be assigned the obligation to deliver the terms of the options contract.Assignment takes place when the written option is exercised by the options holder.The options writer is said to be assigned the obligation to deliver the terms of the options contract.Since 1985, On Assignment, a Fortune 100 Company, has helped businesses solve complex problems and build their future.For over 30 years, they have recruited and placed the world’s brightest in science, technology, engineering, and creative fields.[Read on...] Put-call parity is an important principle in options pricing first identified by Hans Stoll in his paper, The Relation Between Put and Call Prices, in 1969.It states that the premium of a call option implies a certain fair price for the corresponding put option having the same strike price and expiration date, and vice versa....To ensure a fair distribution of assignments, the Options Clearing Corporation uses a random procedure to assign exercise notices to the accounts maintained with OCC by each Clearing Member.In turn, the assigned firm must use an exchange approved way to allocate those notices to individual accounts which have the short positions on those options.If a call option is assigned, the options writer will have to sell the obligated quantity of the underlying security at the strike price.If a put option is assigned, the options writer will have to buy the obligated quantity of the underlying securty at the strike price.