option confusion

I c,

I will be covered to avoid margin callalso i will have few more bucks in there...to cover margin call ..( hoping the underlying does not reverse ofcourse )


what is it ? 30 % of the underlying ? or 30 % of the option ? ...i have to get the details on that .

again thank u ..
 
Instrument: EURUSD
Expiry Date: 12-Oct-2005
Amount: 1,000,000
Strike Price: 1.2350
Open Price: 0.0117 _________
Current
Current Price: 0.0146 _________
% Price: 24.79 %
Market Value: 14,600.00
Market Value incl. Costs: 14,600.00
Open Costs
Commission: 0.00 USD
Total: 0.00 USD
Estimated Close Costs
Commission: 0.00 USD
Total: 0.00 USD
Performance
Profit: 2,900.00 USD » 2,900.00 USD

current spot 1.2284/87 _________

strike - spot = +66 profit
option profit = +29 profit

you see what i mean

i 'd rather exersise it ( assuming it has now expired )
 
how about for the OTM options i am short on , and it has xpired


if i buy it back , i make some profit since it is cheaper now....

but my Q is, do i also keep the premium, and also buy back to make profit .

make profit from buy back, and profit from keep premium..

thats what i think, but does not seem to get into the brokers head

remember it is otm worthless short option, and it has xpired

i think i will keep premium, and buy back to make profit both ways
 
Quote from cloned777777:

how about for the OTM options i am short on , and it has xpired


if i buy it back , i make some profit since it is cheaper now....

but my Q is, do i also keep the premium, and also buy back to make profit .

make profit from buy back, and profit from keep premium..

thats what i think, but does not seem to get into the brokers head

remember it is otm worthless short option, and it has xpired

i think i will keep premium, and buy back to make profit both ways
More...

if it has expired worthless, you can not buy it back. you keep the premium.

My advice to you is that there is no free lunch. Do you really think it is as simple as you think?
 
ahhh , i like that
well, i do not want to buy back OTM sold options any ways...
i'd rather keep the premium

..not looking for free lunch, however some of these brokers
have confusing answers

thanks to members of elite traders for elaborating ..

i wish them the best in trading.
 
RiskArb said
" In OTC forex it need only print ITM one-pip to cause an exercise/assignment "

I wish this was true..

can you please tell me a broker that automaticaly exercises ITM option
 
I was referring to expiration-day. I am getting dumber through association with this thread[if that's possible]. I shall take me leave before I de-evolve any further.
 
Def: said
"if it ( sold option ) has expired worthless, you can not buy it back. you keep the premium."

my question then is, what if it is OTM and it HAS NOT EXPIRED, and is now cheaper to buy it..and i go ahead and buy it back making some profit, then what about the premium ?

will i get the profit for buying it back since it is OTM ...
and then also the premium i was supposed to have gotten when i had sold it


unbeleivable complexity.

if i buy back OTM , Unexpired option for profit, what happens to the premium that i was supppose to get ?
 
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