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Naked Options
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Trading System
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Division of Highlight Investments Group
Disclaimer |
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Intrinsic Value and Extrinsic Value
Intrinsic Value
An option has intrinsic value when it is in-the-money. For an in-the-money
call the intrinsic value is equal to the underlying asset price less the strike
price. For an in-the-money put, the intrinsic value is equal to the strike
prices less the underlying asset price. An option has no intrinsic value if it
is out-of-the-money; its extrinsic value is equal to the price of the option.
Extrinsic Value
The time value of an option is the Extrinsic Value. The Extrinsic Value
equals the option price minus the intrinsic value of the option.
Out-of-the-money options are composed entirely of extrinsic value, which have no
intrinsic value.
The price at which an option can be exercised, is the Strike Price. The right
to buy the underlying asset at the strike price is a call. The right to sell the
underlying asset at the strike price is a put.
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Uncovered SPY Options
Signals
Past 3 Months |
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+351%
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-3%
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Our Signals |
Buy & Hold |
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As of 2/8/2010 |
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Sign up Now!
One single winning trade
could pay for the membership for years to come.
DISCLAIMER: THIS
INFORMATION IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND
DOES NOT CONSTITUTE ANY FINANCIAL ADVICE. RISK
IS INVOLVED IN ALL STYLES OF MONEY MANAGEMENT. Uncovered
options trading involves greater risk than stock trading.
You absolutely must make your own
decisions before acting on any information obtained from
this Website.
The return results represented on the web site
are based on the premium received for the selling options
short and do not reflect margin. It is
recommended to contact your broker about margin requirements
on uncovered options trading before using any information on
this web site. Use our "Trade
Calculator" to recalculate our past performance in
relation to the margin requirements, brokerage commissions
and other trading related expenses.
Past performance is not indicative of future results. |
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Risk Statement: Naked
options trading is very risky, many people lose money trading and
losses can exceed the amount invested.
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© 1997-2010 NOS -
www.Options-Trading-System.com. All Rights Reserved. |
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