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Call Option Agreement Deutsch

04.08.21 Posted in Uncategorized by

Purchasing options can provide you with loss coverage and, in this sense, they can be used conservatively. But there are many options strategies that are little more than the game and can increase your risk to a frightening extent. A simple example is the sale of “uncovered” calls. Remember, if a call is made, the seller of the call must provide the stock. If you have sold this call on shares you already own, the call is “covered” by those shares and your costs are already incurred. If the option is exercised, simply deliver these shares to the option holder. But if you sell an “uncovered” call, which means you don`t own the stock yet, your loss potential is unlimited. If the option is exercised, you must purchase these shares on the open market to cover your commitment, regardless of the price at that time. If a strong market advance or a major announcement from the issuer has pushed up the share price, your losses could be huge. If you lost assets because your broker participated in the options trading, please contact us today. For most casual investors, this definition can also be written in ancient Greek. And yet, brokers sometimes buy and sell options for investors who don`t understand what they are, who can`t appreciate their risks or who can`t afford it, and who may not even know that option trading is taking place. A grain merchant purchased 10 tonnes of wheat for the upcoming harvest season.

It will ensure that by then the price of wheat will exceed 200 euros per tonne. He also buys an option to buy 10 tons of wheat at 200 euros each. If until the price of the underlying (here wheat) is harvested at 250 euros per tonne of wheat exercise price (here 200 euros), the seller of the trader option must sell 10 tons of wheat at 200 euros each. Alternatively, the trader can also buy the 10 tons of wheat on the market for 250 euros per tonne. The seller of the option then refunds the dealer (250 euros 200 euros) 10 – 500 euros. The grain trader was made in exchange for an option premium in exchange for higher grain prices. The seller of the call option is required to provide the underlying; for this obligation, the option premium is paid by the option buyer. The seller (the steward) an option to buy is in the so-called short-call position (obligation to sell).

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