Aired On
Sep 22 2021
12:00 pm - EDT

Key Points to Know About Selling Options

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When it comes to investing, buying is where many people start. But every time there’s a buyer, there’s a seller, too. 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. Join Edward J. Modla of OCC who will cover:

  • The obligations of sellers and the rights of buyers
  • Monitoring premium decay and calculating time value
  • Keeping track of moneyness
  • The effect of changing implied volatility
  • Exercise and assignment, including random assignment
  • Pin risk

Disclosure: Interactive Brokers

Information posted on IBKR Campus 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 Campus 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 OCC and is being posted with permission from OCC. The views expressed in this material are solely those of the author and/or OCC 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.

In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.

Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.
Disclosure: Options Trading

Options involve risk and are not suitable for all investors. For more information read the “Characteristics and Risks of Standardized Options” also known as the options disclosure document (ODD). To receive a copy of the ODD call 312-542-6901.Multiple leg strategies, including spreads, will incur multiple commission charges.

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