Edward J Modla Director of Education, The Options Industry Council
Tue, Jan 14, 2020 12:00 PM – 1:00 PM EST
Copy and paste this link into your browser to receive a copy of the Options Disclosure Document, http://www.optionsclearing.com/about/publications/character-risks.jsp
When it comes to investing, buying is where most people start. But every time there’s a buyer, there’s a seller, too. So who are these sellers? In “Key Points to Know About Selling Options” you’ll learn how selling calls and puts is a very different strategy than buying. Most importantly, you’ll see that while selling brings opportunity, it also has its own set of risks. Here’s some of what we’ll cover:
- The obligations of sellers and the rights of buyers
- Monitoring premium decay and calculating time value
- Keeping track of moneyness
- Exercise and assignment, including random assignment
- Pin risk
Options involve risk and are not suitable for all investors. Please read the “Characteristics and Risks of Standardized Options” before investing in options. For more info see, ibkr.com/info
Interactive Brokers LLC is a member of NYSE, FINRA, SIPC
If you can’t make this session, register and we’ll send you the recording.
Disclosure: Interactive Advisors
This material is not intended as investment advice. Interactive Advisors or portfolio managers on its marketplace may hold long or short positions in the companies mentioned through stocks, options or other securities.
Pursuant to the Investment Management Agreement between Interactive Advisors and its clients, all brokerage transactions occur through Interactive Brokers LLC, an affiliate of Interactive Advisors. Interactive Advisors does not offer services through any other broker-dealer. The use of an affiliate for brokerage services represents a conflict of interest. Interactive Advisors clients acknowledge this conflict of interest and authorize Interactive Advisors to execute transactions through Interactive Brokers LLC when they open an Interactive Advisors account. Clients should consider the commissions and other expenses, execution, clearance, and settlement capabilities of Interactive Brokers LLC as a factor in their decision to invest in an Interactive Advisors Portfolio. Interactive Advisors believes it can meet its best execution obligation by trading its clients’ trades through Interactive Brokers LLC. While there can be no assurance that it will in fact achieve best execution, Interactive Advisors does periodically monitor the execution quality of transactions to ensure that clients receive the best overall trade execution pursuant to regulatory requirements.
Disclosure: Interactive Brokers
Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Interactive Advisors, an affiliate of Interactive Brokers LLC, and is being posted with permission from Interactive Advisors. The views expressed in this material are solely those of the author and/or Interactive Advisors and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: Options Trading
Options involve risk and are not suitable for all investors.
For more information read the “Characteristics and Risks of Standardized Options”. For a copy, call 312 542-6901.