At the money call option put option on the dow


At the money call option put option on the dow


The easiest and most cost-effective avenue to trade the Dow Jones Industrial Average (DJIA) is through an exchange traded fund (ETF) (See: Strategies to trade the Dow Jones Industrial Average). One of the oldest ETFs is the SPDR Dow Jones Industrial Average ETF Trust ( DIA), which tracks the DJIA and seeks to provide investment results that correspond to the price and yield performance of the index. Both call and put options are simultaneously at the money. For example, if XYZ stock is trading at 75, then the XYZ 75 call option is at the money and so is the XYZ 75 put option.

optionn An at-the-money option has no intrinsic value, but it may still have time value. Any call or put whose underlying stock price equals the strike price is said to be at the money. Both of these are cash-settled European-style options.If you want to oprion options on the DIAMONDS Doow the symbol is DIA. The DJX index option is an european style option and may only be exercised on the last business day before expiration. Futures contracts with values based on the Dow Jones Industrial Average stock index allow traders to make leveraged bets concerning the future of the DJIA.

With regular futures trading, the leverage cuts both ways, so picking the wrong direction with a Dow futures trade can turn into a very expensive loser. Options on futures allow traders to set up trades with different risk profiles, changing the costs of a trade and putting a limit on the downside risk. Step 1Open an account with a registered commodity futures brokerage firm.




At the money call option put option on the dow

At the money call option put option on the dow

At the money call option put option on the dow



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