Call and put option volume equivalents


Call and put option volume equivalents


An important principle in options pricing is called a put-call parity. It says that the value of a call option, at one strike price, implies a certain fair value for the corresponding put, and vice versa. The argument, for this pricing relationship, relies on the arbitrage opportunity that results if there is divergence between the value of calls and puts with the same strike price and expiration date. Arbitrageurs would step in to make profitable, risk-free trades until the departure from put-call parity is eliminated.

Knowing how these trades work can give you a better feel for how put options, call options and the underlying stocks are all interrelated. Please enable JavaScript to use all the features on this page. This page uses JavaScript to progressively load the article content as a user scrolls. Click the View full text link to bypass dynamically loaded article content. View call and put option volume equivalents text. AbstractThe price impacts of signed options volume are investigated with transactions data for options and futures on the German DAX index.

We find that signed options and futures trading have a significant contemporaneous price effect, and we investigate the source of the effect. Quest has strategic puh with DIRECTV and Verizon Wireless. These call options are out-of-the-money and this activity has a very bullish appearance. A AdjustmentsA change to contract terms due to a corporate action (e.g., a merger or stock split).

Depending on the corporate action, different contract terms (including strike price, deliverable, expiration date, multiplier etc.) could be adjusted. An adjusted option may cover more or less than the usual 100 shares. For example, after a 3-for-2 stock split, the adjusted option will represent 150 shares. South LaSalle Street in Chicago may not have the name recognition that Wall Street does in New York, but for option caol it is the center of their financial universe.

The Chicago based firm owns the Chicago Board Options Exchange, C2 Optjon Exchange, and CBOE Futures Exchange.




Call and put option volume equivalents

Volume option call equivalents put and

Call and put option volume equivalents



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