Finding the underlying stock value of a call option? - Traders Hideout | futures io social day trading
futures io futures trading


Finding the underlying stock value of a call option?
Updated: Views / Replies:1,264 / 13
Created: by brags Attachments:1

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 1  
 
Thread Tools Search this Thread
 

Finding the underlying stock value of a call option?

  #1 (permalink)
Trading Apprentice
Vancouver
 
Futures Experience: Beginner
Platform: itrade
Favorite Futures: Stocks
 
Posts: 27 since Sep 2015
Thanks: 14 given, 5 received

Finding the underlying stock value of a call option?

Nm...the "call price" is what I am looking for.


Last edited by brags; September 19th, 2015 at 08:45 PM.
Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Market Wizard
Germany
 
Futures Experience: Intermediate
Platform: Other
Favorite Futures: ES, YM, 6E
 
Posts: 2,644 since Feb 2013
Thanks: 4,902 given, 6,438 received
Forum Reputation: Legendary


As an example the pic shows the front option series for AAPL.
Left side are the call prices, right side the put prices; multiplier is 100.

I.e.: You would have paid 2.68$ (ask) for the right to buy AAPL on 9/25 @112 (last AAPL price: 113.45).

Since your question is very basic, a well-meant bit of advice: Try to learn the option basics via Google or one of the
thousands of books about it before putting money on the line.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following 2 users say Thank You to choke35 for this post:
 
  #4 (permalink)
Trading Apprentice
Vancouver
 
Futures Experience: Beginner
Platform: itrade
Favorite Futures: Stocks
 
Posts: 27 since Sep 2015
Thanks: 14 given, 5 received

Ok thanks for the example..so the value of the option is $114.68 per share.


Last edited by brags; September 20th, 2015 at 03:58 PM.
Reply With Quote
 
  #5 (permalink)
 Vendor: www.probabletrades.com 
OC, California, USA
 
Futures Experience: Advanced
Platform: IB/TWS, NinjaTrader, thinkorswim
Favorite Futures: stocks, options, futures, VIX
 
shodson's Avatar
 
Posts: 1,859 since Jun 2009
Thanks: 480 given, 3,254 received


brags View Post
Ok thanks for the example..so the value of the option is $114.68 per share.

You can exercise your option anytime you want. It doesn't make sense to do so unless the stock is above the "strike" price, otherwise you're overpaying for the stock.

You should really go learn some basic options concepts. The OIC has some great, free resources.

Reply With Quote
 
  #6 (permalink)
Market Wizard
Germany
 
Futures Experience: Intermediate
Platform: Other
Favorite Futures: ES, YM, 6E
 
Posts: 2,644 since Feb 2013
Thanks: 4,902 given, 6,438 received
Forum Reputation: Legendary


brags View Post
Ok thanks for the example..so you would not get value from purchasing the option until AAPL reaches 114.68 or higher?

If the call expires on 9/25 and AAPL is below 112, you lose the the complete call price.
Between 112 and 114.68, you have a partial loss. Commissions ignored, you're in the black
above 114.68.

Reply With Quote
 
  #7 (permalink)
Trading Apprentice
Vancouver
 
Futures Experience: Beginner
Platform: itrade
Favorite Futures: Stocks
 
Posts: 27 since Sep 2015
Thanks: 14 given, 5 received

I have done a lot of tutorials and these are concepts that I am not quite clear on.


choke35 View Post
If the call expires on 9/25 and AAPL is below 112, you lose the the complete call price.
Between 112 and 114.68, you have a partial loss. Commissions ignored, you're in the black
above 114.68.

Thanks...that is exactly what I was trying to determine. So why don't they just include the 114.68 in the option chain so you can see it at a glance?


Bid:2.65 Ask:2.68 Strike price:112 Buying price:114.68

Quick question...if I purchase the option, and then exercise my right to buy... where do the shares come from?


Last edited by brags; September 20th, 2015 at 07:07 PM.
Reply With Quote
 
  #8 (permalink)
Market Wizard
Germany
 
Futures Experience: Intermediate
Platform: Other
Favorite Futures: ES, YM, 6E
 
Posts: 2,644 since Feb 2013
Thanks: 4,902 given, 6,438 received
Forum Reputation: Legendary


brags View Post
I have done a lot of tutorials and these are concepts that I am not quite clear on.



Thanks...that is exactly what I was trying to determine. So why don't they just include the 114.68 in the option chain so you can see it at a glance?


Bid:2.65 Ask:2.68 Strike price:12 Buying price:114.68

Quick question...if I purchase the option, and then exercise my right to buy... where do the shares come from?

For efficient front ends showing break-evens at expiry is only a waste of space,
since most options expire worthless or are closed before the expiry.

Most options are never exercised; if they do, the shares normally come from covered positions, i.e. stocks that
are owned by institutions that increase their returns by writing options.

Reply With Quote
The following user says Thank You to choke35 for this post:
 
  #9 (permalink)
Trading Apprentice
Vancouver
 
Futures Experience: Beginner
Platform: itrade
Favorite Futures: Stocks
 
Posts: 27 since Sep 2015
Thanks: 14 given, 5 received


choke35 View Post
For efficient front ends showing break-evens at expiry is only a waste of space,
since most options expire worthless or are closed before the expiry.

Fair enough


Last edited by brags; September 20th, 2015 at 06:52 PM.
Reply With Quote
 
  #10 (permalink)
Elite Member
Luxembourg, Luxembourg
 
Futures Experience: Advanced
Platform: TWS
Broker/Data: Interactive Brokers
Favorite Futures: Stocks
 
Posts: 491 since May 2012
Thanks: 1,641 given, 1,126 received



brags View Post
I have done a lot of tutorials and these are concepts that I am not quite clear on.



Thanks...that is exactly what I was trying to determine. So why don't they just include the 114.68 in the option chain so you can see it at a glance?


Bid:2.65 Ask:2.68 Strike price:112 Buying price:114.68

Quick question...if I purchase the option, and then exercise my right to buy... where do the shares come from?

Remember, a call option grants the right, but not the obligation to buy the underlying. The option is a separate financial instrument from the underlying, with its own characteristics, therefore you will not see a "Buying price" of 114.68 in the options chain.

Reply With Quote

Reply



futures io > > > Finding the underlying stock value of a call option?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Stock Option trading delayed on stock market open Davecor ThinkOrSwim 0 June 17th, 2015 08:12 PM
Delta-Neutral Stock Option Trading calitrader Elite Trading Journals 6 December 19th, 2014 02:22 PM
Stock Market Ambiguity / Analyzing index option trading volume across strike prices SMCJB Options on Futures 1 May 31st, 2014 09:43 AM
Stock, Option, Futures & FOREX broker? TonyB Reviews of Brokers and Data Feeds 8 November 16th, 2011 08:39 PM
Microsoft Stock Lifted by Call For CEO Ballmer to Resign Quick Summary News and Current Events 0 May 26th, 2011 01:30 PM


All times are GMT -4. The time now is 10:37 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-13 in 0.16 seconds with 38 queries on phoenix via your IP 54.226.113.250