Stock options trading program 2002



Retrieved 15 March Other types of options exist in many financial contracts, for example real estate options are often used to assemble large parcels of land, and prepayment options are usually included in mortgage loans. The trader selling a put has an obligation to buy the stock from the put buyer at a fixed price "strike price". Similar to the straddle is the strangle which is also constructed by a call and a put, but whose strikes are different, reducing the net debit of the trade, but also reducing the risk of loss in the trade. In all markets, program trading averaged During other times, exercise would be allowed, and the option is effectively American there. While strategies do vary, for the most part this information can be found online or in textbooks for little to no cost.




Elsevier and Mondo Visione. Enter your email address to receive regular updates. Program Trading Averaged The New York Stock Exchange today released its weekly program-trading data submitted by its member firms. The report includes trading in all markets as reported to the NYSE for Feb. The data indicated that during Feb. This included program trading associated with the February 15 monthly expiration of stock-index options and futures.

Program trading is calculated as the sum of the shares bought, sold and sold short in program trades. The total of these shares is divided by total reported volume. This is not the only way to measure program trading. Three alternatives for Feb. Stock options trading program 2002 the first quarter ofthe NYSE's program-trading report includes profiles of program trading whenever the Dow Jones Industrial Average moves points or more in a single direction during any one-hour period.

In all markets, program trading averaged In aggregate, program volume executed on the NYSE by firms as agent, for non-member customers, amounted to Program volume executed as principal, for their own accounts, amounted to Of the five member firms reporting the most program trading activity on the NYSE, Morgan Stanley and UBS Warburg executed most of their program trading as principal, for their own accounts.

Deutsche Banc Alex Brown, Bear Stearns and RBC Dominion executed most of their program trading activity for customers, as agent. Index arbitrage is defined as the purchase or sale of a basket of stocks in conjunction with the sale or purchase of stock options trading program 2002 derivative product such as stock-index futures, to profit from the price difference between the basket and the derivative product. The rule provides that derivative-related program strategies be executed only in a stabilizing manner after the DJIA moves points or more from the previous day's close.

In addition to index arbitrage, such strategies include customer facilitations, liquidation of facilitations, index substitutions, liquidation of error accounts, risk modifications, and liquidation of exchange-for-physicals stock positions. All other types of portfolio-trading strategies combined accounted for FTSE Mondo Visione Exchanges Index. Legal and About Us.




Winning Strategies for Stock Options Trading by Shailesh Saraf


The New York Stock Exchange today , program trading amounted to of stock -index options and futures. Program trading encompasses a wide. are employee stock options, the application of the model in actual options trading is clumsy because of the assumptions (Winter ), pp. 35. Employee stock option ; factor in the Stock Market Downturn of Employee stock options have to be program ; Employee stock.

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