Check the background of optionsXpress or one of its investment professionals on FINRA's BrokerCheck. 27 rows · View the basic BSX option chain and compare options of Boston Scientific Corporation on .
Covered Uncovered, or naked Whether a contract is covered or uncovered has a great deal to do with the margin , or credit, required of the parties involved. Covered Call A call writer may be required to deliver the stock if the buyer exercises his option. If she has the shares on deposit with her broker, then she has written a covered call. There is no margin requirement for a covered call; that is, because the underlying securities are sitting right there, there is no question of creditworthiness Uncovered Call If the call writer does not have the underlying shares on deposit, she has written an uncovered call , which is much riskier for the writer than a covered call.
If the buyer of a call exercises the option to call, the writer will be forced to buy the asset at the spot price and, since there is no limit to how high a share price can go, that spot price can theoretically go up to an infinite amount of dollars. Covered puts are options positions where the writer has cash on deposit equal to the cost to purchase the shares from the holder of the put if the holder exercises his right to sell.
This limits the writer's risk because money or stock is already set aside. But it is really not that much of a risk. The stock is not going to be purchased at the spot price; it is going to be purchased at the exercise price, which was agreed to the day of the opening transaction. The higher the spot price goes, the more the writer benefits because she buys the stock at the lower exercise price and sells it for whatever she can get in the market.
Let's consider the worst-case scenario, in which the writer has to pay the full exercise price for a completely worthless stock. Nobody wants to lose that kind of money, but it is insignificant compared with the astronomical losses possible with writing uncovered calls. Uncovered puts are a short position in which the writer does not have cash on deposit equal to the cost to purchase the shares from the holder of the put if the holder exercises his right to sell.
In this case, the writer knows to the dollar, exactly what the worst-case scenario is and can make an informed decision about whether or not it is worth tying up capital to cover the put. Option Market Regulations Not surprisingly, there are regulations governing the market for options. You have probably heard the expression " cornering the market ".
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Options base fee is not charged. Excellent education program comprised of regularly-held free webinars, workshops and tutorials. The research center offers articles, reports and newsletters in addition to personal coaching sessions. Analyst reports, market commentary, research reports and analysis tools are offered for the benefit of the investors. Very strong trading platform for mobiles with app offerings for iPhone, iPad, Blackberry and Android, besides having a great mobile site.
You can trade from anywhere using the mobile platform which has almost as much functionality as the other platforms. Part of the Charles Schwab family.
Strong mobile trading platform. Well designed tools and excellent trading technology. No fee for IRA accounts. Free of cost paper trading. No minimum fee for opening account.
Free broker assisted trading. Great for options trading. No international trading facilities.
Great for options trading.
Being a part of Charles Schwab, they can also make use of the great number of local branch offices to provide personalized customer service. A trader who expects a stock's price to decrease can sell the stock short or instead sell, or "write", a call.