Stock Option Trading & Investing Blog http://www.greenstockblog.com Online Stock Option Information & Discussion Mon, 05 May 2008 15:30:26 +0000 http://wordpress.org/?v=2.3.1 en GOOG http://www.greenstockblog.com/2008/05/05/goog/ http://www.greenstockblog.com/2008/05/05/goog/#comments Mon, 05 May 2008 15:30:26 +0000 admin http://www.greenstockblog.com/2008/05/05/goog/ Goog site surged overnight on 4/18.  It is back to the 590’s so it is closing in on 600.  AAPL has also been on it’s way up in the last several weeks which is a good sign for the iphone maker.  AAPL had taken a big drop after reaching 200.  Now it is back in the 180’s.

]]> http://www.greenstockblog.com/2008/05/05/goog/feed/ Internet Broker Prices http://www.greenstockblog.com/2007/12/15/6/ http://www.greenstockblog.com/2007/12/15/6/#comments Sat, 15 Dec 2007 19:50:13 +0000 admin http://www.greenstockblog.com/?p=6 Below  are the prices for online brokerage firms that trade options.  Prices reflect trades for internet accounts.  I will be posting more data for bulk trade discounts in the near future so please check back.

TD Ameritrade $9.99 + 0.75 cents per contract
http://www.TDAMERITRADE.com

Etrade
http://www.ETRADE.com
$9.99 + 0.75 cents per contract

Scottrade
http://www.scottrade.com/
$7 + $1.25 per contract

Fidelity
http://www.fidelity.com
$19.95 + 0.75 cents per contract

]]> http://www.greenstockblog.com/2007/12/15/6/feed/ Moneyness http://www.greenstockblog.com/2007/12/13/moneyness/ http://www.greenstockblog.com/2007/12/13/moneyness/#comments Thu, 13 Dec 2007 18:49:42 +0000 admin http://www.greenstockblog.com/?p=5 At The Money- ATM options have a strike price that is the same as the current trading price.  An ATM option has no intrinsic value but does have time value.

In The Money- ITM options have positive intrinsic value and positive time value.  A call option is said to be in the money when the strike price is below the current trading price.  A put option is in the money when the current price is higher than the strike price.

Out Of The Money- OTM options have no intrinsic value.  For a call option this means the strike price is above the current trading price.  A put option is OTM when the strike price is below the current trading price.

]]> http://www.greenstockblog.com/2007/12/13/moneyness/feed/ Explanation Of Call & Put Options http://www.greenstockblog.com/2007/12/11/explanation-of-call-put-options/ http://www.greenstockblog.com/2007/12/11/explanation-of-call-put-options/#comments Tue, 11 Dec 2007 19:25:59 +0000 admin http://www.greenstockblog.com/?p=4 Options
Options are financial contracts that convey the right, but not the obligation, to engage in a future transaction between two parties (the buyer and seller). There are two types of options that will be discussed on this blog , American call options and American put options.
For an explanation of terms in this blog please see:

Call Options
The buyer of a call option pays a premium in order to have the right to buy an agreed quanity of a particular commodity from the seller of the option before the expiration date. The buyer of the call option wants the price of the stock to go up. When the price of the underlying instrument surpasses the strike price, the option is said to be in the money. An American call option allows the buyer to exercise at any time during the life of the option.

Put Options
The buyer of a put option pays a premium in order to have the right to sell a stock at the strike price any time before the expiration date of the contract. The buyer pays a premium in exchange for having the option. The buyer of a put option wants the stock price to fall by the exercise date. An American Put option allows the buyer to exercise at any time during the life of the option.

The terms of the option are specified on a term sheet.

Each option contract has the following specifications:

Whether it is a call or a put option
Quantity of shares
Strike price
Expiration date
Settlement terms
The multiplier (usually 100) to convert the actual price to the actual premium amount.

]]> http://www.greenstockblog.com/2007/12/11/explanation-of-call-put-options/feed/