more option stuff

** closing / cancelling **

if shorted, go long, if long, go short, to close an option 

otherwise the end of the month comes and you go into delivery mode

** strategy **

buy a call and a put at a price

 predict a target price

set a profit and loss number

cut your losses, let your profits run, and move up your stop-loss 

** what we noticed **

call option at strike 415 , is getting cheaper as underlying moves towards 420  (419 currently)...

28 th Dec 415 CE 1 14.25 13.75

why isn't it getting dearer ? it's in the money, and intrinsic value is increasing .... ?

** easy terminology - redux **

what they say :  short a call

what it means : be forced to sell tomorrow at a loss, or keep the premium

what they say :  short a put

what it means : be forced to buy tomorrow at a loss, or keep the premium

what they say :  long a call

what it means : be forced to buy tomorrow , profitably, or lose the premium

what they say :  long a put

what it means : be forced to sell tomorrow , profitably, or lose the premium

more puts bought than calls, over a threshold,  means tt markets have no more space to go down, and so will swing up some

more calls bought than calls, over a threshold,  means tt markets have no more space to go up, and so will swing down some