285 10.50 10.70 14.80 .20 1.00 2.50290 5.70 1.20 11.40 .30 1.80 4.10295 1.60 4.30 7.90 1.10 3.80 5.70300 .40 2.00 5.40 4.90 6.50 8.30305 .20 1.20 3.80 9.60 10.60 11.30310 .10 .60 2.60 14.50 15.10 15.00
Tick Price :
In financial markets, a
is the smallest increment (tick) by which the price of stocks, futures contracts or other exchange-traded instrument can move. Tick sizescan be fixed or vary according to the current price (common in European markets) with larger increments at higher prices. Heavily-traded stocks are given smaller tick sizes.
Span Margin :
Options and futures writers are required to have a sufficient amount of margin in their accounts to cover potential losses. The SPAN system, through itsalgorithms, sets the margin of each position to its calculated worst possible one-daymove. The system, after calculating the margin of each position, can shift any excessmargin on existing positions to new positions or existing positions that are short of margin.
The “price” an option buyer pays and an option writer receives is known as th
e premium. Premiums are arrived at through open competition between buyers and sellersaccording to the rules of the exchange where the options are traded. A basic know ledge of the factors that influence option premiums is important for anyone considering optionstrading.The premium cost can significantly affect whether you realize a profit or incur aloss.
This is the last day on which an option can be either exercised or offset. Becertain you know the exact expiration date of any option you have purchased or written.Options often expire during the month prior to the delivery month of the underlying futurescontract.Once an option has expired, it no longer conveys any rights. It cannot be either exercised or offset. In effect, the option rights cease to exist.
Premiums for exchange traded options are reported daily in the business pages of most major newspapers, as well as by a number of internet services. With anunderstanding of terms call, put, strike price and expiration month it is easy to determine the premium for a particular option. Take a look at the following quotation for gold options:
Gold (100 troy ounces; $ per troy ounce)Strike Calls-Settle Puts-Settle PriceJan Fe b Apr Jan Fe b Apr