Typically, short sellers buy calls to protect their positions against rallies in the underlying shares.
Typically, put options are used to bet on a downside move in the underlying shares.
That value depends in part on the expected dividend yield on the underlying shares.
Market makers can, for instance, settle trades using the underlying shares rather than cash.
Investors anticipating continued appreciation in the price of the underlying shares purchased longer-dated call options on the stock.
Despite the slight appreciation in the price of the underlying shares, bearish transactions dominated options activity on the fund.
To hedge options that they have sold, sellers usually offset their positions by either buying or selling the underlying shares.
Aside from betting on a rally in the underlying shares, call options can also be used to protect short positions in the stock.
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Alternatively, the trader may be cautiously optimistic on the pharmaceuticals giant, establishing the put spread to hedge a long position in the underlying shares.
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Options are trading at one third more than the historic volatility on the underlying shares--offering strong indication that traders are bracing for sudden fluctuation.
One strategist appears to have enacted a three-legged bullish play on Visa to reduce premium required to position for upside potential in the underlying shares.
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Both the short strangle and the short straddle strategies employed on Pfizer today indicate investors expect volatility in the price of the underlying shares to decline going forward.
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Relatively large call open interest in the November contract suggests some strategists saw the value of previously established bullish positions on Tekelec sky-rocket on the move in the underlying shares.
The investor may be employing the three-way spread to take finance an outright bearish view on the stock, or could be using the trade to hedge a long position in the underlying shares.
Common shares outstanding plus shares underlying stock-based awards totaled 464 million on March 31, 2012, compared with 466 million a year ago.
Common shares outstanding plus shares underlying stock-based awards totaled 470 million on December 31, 2012, compared with 468 million one year ago.
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Common shares outstanding plus shares underlying stock-based awards totaled 469 million on September 30, 2012, consistent with 469 million one year ago.
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The details came out Thursday, when Icahn disclosed a 12.98% stake in Herbalife, a holding of just over 14 million shares (including shares underlying call options).
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Shares of Herbalife soared by more than 10% in Friday morning trading in New York after Icahn disclosed a big 13% stake, which includes shares underlying call options, in the controversial nutritional supplements maker.
ProPublica shares its underlying data on, say, doctors' links with pharmaceutical firms, helping to generate more coverage.
Given the recent pullback in the stock and the huge underlying bid under these shares, we believe that the downside is strongly limited.
Some market makers, called authorized participants (APs), are allowed to interchange ETF shares for their underlying securities, corporate bonds in this case.
The weaker underlying performance sent the company's shares lower on Wednesday, ending down 4.7%.
The opposite trade occurs when ETF shares trade at a discount to their underlying securities.
He looks for shares trading at discounts to what their underlying property is worth, that is, the net asset value.
The shares currently trade about 8% below the underlying per-share value of its uranium holdings.
The owners value shares at less than the proportional value of underlying assets on the theory that fractional interests in a portfolio are not worth as much to outsiders.
Money fund shares price at a dollar on a daily basis not because they have promised to repay shares at a dollar, but because the underlying assets are required to meet very stringent portfolio requirements under current SEC regulations.
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For instance, owners of one recently closed ETF saw their shares marked down 9.5% from the underlying value as sellers headed for the doors.
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