As well as betting on further outright falls in US crude prices, traders have been aggressively taking up put options
-- an option to sell a contract once it has fallen to a certain level -- at prices as low as $35 and even $30 per barrel.
With regard to the question of whether to sell their put options
on the stock exchange or use them to tender shares, shareholders are advised to follow the instructions and recommendations of their custodian bank.
However, the price of a put option
rises with the fall in the underlying security's price as the lower the latter's price relative to the strike price on the exercise day, the higher the pay-off.
When a taxpayer writes (grants) a put option
(an option the holder may exercise, requiring the option writer to purchase something), either (1) the option is exercised, with the option premium being included in the purchaser's basis for the property purchased; or (2) the option lapses, with the option premium constituting ordinary income to the option writer.
Another strategy is buying a put option
to protect an existing stock position, which is like buying downside price insurance.
Most embarrassing to the government, however, is the fact that many of the mysterious put options
were purchased through an investment firm that was formally headed by Buzzy Krongard, the current executive director of the CIA.
For instance, your company may buy a sterling put option
to hedge an anticipated future stream of sterling revenues regardless of an existing sterling purchase commitment -- the effective "natural" hedge.
The number of put options
outstanding in the nearest three expiration months is more than three times the number of call options.
The strategy that employs a combination of call options is termed 'bear call spread', while the one that uses put options
is termed 'bear put spread'.
The company also announced today that it has received notice terminating additional put options
covering 1,125,000 shares of RSA Security stock from the counterparty to those put options
If you purchased Apple securities and/or sold put options
on Apple shares between December 1, 2005 and August 11, 2006, inclusive, you may be a member of the class and have until October 24, 2006, to move the Court to serve as lead plaintiff, if you so choose.
Summary: Beat the market volatility and squeeze it for profit by using a combination of call and put options
called long and short straddles.
Qualifying Spring Wheat farmers in those counties can gain valuable price protection by using put options
traded on the Exchange.
Aurizon has chosen to purchase put options
in order to maximize the exposure for Aurizon's shareholders to a rising gold price.
Putco III) Put Options
, giving them the right to sell, between Dec.