Insert Option Choice into the Performance Contract and eSign it in minutes

Aug 6th, 2022
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Time is a vital resource that every business treasures and attempts to transform in a benefit. In choosing document management software, be aware of a clutterless and user-friendly interface that empowers consumers. DocHub provides cutting-edge features to improve your document administration and transforms your PDF file editing into a matter of a single click. Insert Option Choice into the Performance Contract with DocHub to save a ton of time and improve your productivity.

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How to Insert Option Choice into the Performance Contract

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[Music] good afternoon ladies and gentlemen were going to get started were glad you could join us for the latest installment of the options industry councils webinar series my name is Alexander and Ill be guiding you through todays session Im pleased to welcome our presenter today bill Ryan who is an integral instructor for OIC providing investors with the core teachings essential for options investing if you ever called the investor services line or chatted with us online you may very well have spoken with them bill is a senior investor services specialist for the OCC hes responsible for providing support to a comprehensive options resource center that provides information and education about options and supports all products traded on all OCC participant exchanges were excited to introduce bill as he brings more than 25 years of industry experience to our discussion today thank you Alex and welcome everybody were here to talk about how various corporate actions can impact opt

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You write a put option by first executing a sell to open order. You collect a premium at the onset of the trade without owning shares of the underlying asset. This strategy can be risky, so it generally requires high-level options trading knowledge.
A put option (or put) is a contract giving the option buyer the right, but not the obligation, to sellor sell shorta specified amount of an underlying security at a predetermined price within a specified time frame.
When an investor chooses to exercise a contract, the OCC randomly assigns the obligation to someone who sold the option being exercised. For example, if 100 people sold XYZ calls with a strike of $40, and one of those options gets exercised, the OCC will randomly assign that obligation to one of the 100 sellers.
In a Nutshell A call option gives the holder the right but not the obligation to buy the shares at a predefined price during the life of the option. In writing a call option, the seller (writer) of the call option gives the right to the buyer (holder) to buy an asset by a certain date at a certain price.
Definition: Put option is a derivative contract between two parties. The buyer of the put option earns a right (it is not an obligation) to exercise his option to sell a particular asset to the put option seller for a stipulated period of time.
Example of an Options Contract Company ABCs shares trade at $60, and a call writer is looking to sell calls at $65 with a one-month expiration. If the share price stays below $65 and the options expire, the call writer keeps the shares and can collect another premium by writing calls again.
Understanding Writing an Option Traders write an option by creating a new option contract that sells someone the right to buy or sell a stock at a specific price (strike price) on a specific date (expiration date). In other words, the writer of the option can be forced to buy or sell a stock at the strike price.
An ITM option is one with a strike price that has already been surpassed by the current stock price. An OTM option is one that has a strike price that the underlying security has yet to docHub, meaning the option has no intrinsic value.

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