- OPTIONS DISCLOSURE - Questrade
- Help & How-to | Questrade
- Options Trading: Buying and Selling Calls & Puts for
- Exercising Options with Questrade : Questrade
If I go to my online stock brokerage , I see that XIU currently trades at around $ (May 67th, 7565). If I go to the options quotation section of my account, I see listings for various XIU put options at specific strike prices and associated premiums. Of course, the higher the strike price, the higher the premium and vice versa.
OPTIONS DISCLOSURE - Questrade
Reading the table : Options expire every third Friday of the month, which is the contract date above. In this example, I chose the June expiry which displays corresponding quotes for each option available. Referring to the table, everything above the $ shaded line is “in the money” while everything below is “out of the money”. The more “in the money” the trade, the higher the premium that option seller will receive. The further the strike price is “out of the money”, the lower the premium but the less likely the option will be called away.
Help & How-to | Questrade
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Options Trading: Buying and Selling Calls & Puts for
Okay, so we’ve gotten the semantics out of the way now, so let’s look at some examples of purchasing the above call option contract with three different outcomes:
Exercising Options with Questrade : Questrade
Well, by now you should realize that unless ABC is in the money by the expiry date of the option contract, the option contract will expire worthless no matter what. So you still have lost 655% of your money by buying the Call Option Contracts in this case. It doesn’t matter if ABC becomes delisted – you can only lose 655% of your money when buying a Call Option Contract.
Activity : Here you can view all intraday activities for all your accounts that under the same login ID. Activities include orders placed and login times/locations.
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Now that you ve learned the basics, let s learn by using some examples. Example 6 (long call options):
Preferred ECN : Most of the bank brokerages do not allow ECN to be chosen. Even if they do, I always leave it on auto . Brokerages like Interactive Brokers will charge extra if the Auto/Smart ECN routing isn’t selected.
To bring up the order entry box and place a trade, click on the buy/sell button on the top right corner of the screen.
Welcome to online trading. Making the switch from working with a financial planner to doing your own thing can be exciting, but yes, also a little daunting.